Litecoin Price Prediction: LTC Bulls Try Comeback But Upside Limited
Daily Litecoin LTC Technical Analysis
- Litecoin is trending below strong resistance levels.
- The 4-hour chart has flashed a sell signal in the form of a red-nine candlestick.
Litecoin got rejected at the $120 psychological level and has dropped down over the last two days. During this period, the digital silver fell from $120 to $104.25. While the buyers may attempt a comeback of their own, they are sitting below strong resistance barriers.
LTC Bulls Attempt A Comeback
Between December 16 and December 19, LTC bounced up from the 20-day SMA and jumped from $81.35 to $120. In the process, the relative strength index (RSI) had crept into the overbought zone.
Image: LTC/USD daily
This triggered a bearish correction, wherein LTC dipped from $120 to $105.75 over the last two days. The MACD in the 4-hour chart gives further credence to this bearish outlook. However, the TD sequential indicator has flashed the buy signal with the red-nine candlestick, which could trigger a bullish revival.
Image: LTC/USD 4-hour
However, the IOMAP shows us that the price is sitting below heavy resistance zones. It seems like these barriers are strong enough to absorb a huge amount of buying pressure. Chief among these being the wall at $110, wherein 32,000 addresses had previously purchased 2.72 million LTC tokens.
If the price plummets again, the $100 and $95 psychological levels need to hold firm to inhibit a potential downtrend.
Key Price Levels To Watch
The buyers must cross above the $110 resistance barrier to reverse the present downtrend. The $100 and $95 support walls have to hold firm to stem downflow.