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Litecoin Price Prediction: Bulls attempt fight back to prevent drop below $70

Last Updated December 9th 2020

Daily Litecoin LTC Technical Analysis

  • The 4-hour chart had a green session after eight consecutive bearish sessions.
  • The MACD shows that market momentum is still overwhelmingly bearish.

After failing to repeatedly consolidate their position in the $90 zone, the price has been on a downswing. Over the last four days, the coin known as "digital silver" dropped from $84 to $76.50, breaking below the 20-day SMA in the process. Let’s take a closer look.

LTC bears aim for the 50-day SMA

Following a heavily bearish Tuesday, Litecoin dropped from $82.25 to $76.75, falling below the 20-day SMA. Currently, the price is on a free fall and looking to drop below the $70-mark. In fact, the price reached an intra-day low of $71.80 before the buyers launched a comeback of their own.

ltc/usd daily chart

Image: LTC/USD daily chart

The 4-hour LTC chart has been flirting with lower Bollinger Band, indicating that it was on the verge of being underpriced. However, the buyers have managed to take control and push the price into the Band. Interestingly, this was the first bullish session in the 4-hour chart after eight consecutive bearish sessions.

ltc/usd daily chart bollinger band

Image: LTC/USD daily chart

However, this looks like a temporary bullish respite and it seems like the price isn’t anywhere close to finishing its correction any time soon. One can see this by observing the moving average convergence/divergence (MACD) indicator, which shows that the overall market momentum is still overwhelmingly bearish.

Key price levels to watch

The Bollinger Band's lower bound in the 4-hour time frame is a crucial level ($75). If LTC falls below this level, then it will be difficult for the buyers to keep the price in the $70 range. If that does happen, the buyers will need to guard the 50-day SMA ($69) with everything they have. A further break below this level will take the price all the way down to the 200-day SMA ($55).

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