Litecoin Price Prediction: LTC Drops After Rejection At Critical Level
Daily Litecoin LTC Technical Analysis
- The MACD in the 4-hour time frame shows increasing bearish market momentum.
- The number of addresses in the Litecoin protocol has been steadily increasing.
Litecoin bounced up from the $130 support wall and has encountered resistance at the 20-day SMA. After failing to break above this level over the last few days, the price tumbled down.
Litecoin Drops By A Little Over $10
Litecoin dropped from $152 to $140, losing a little over $10 over the last two days. Dipping below the $150 psychological zone could be a significant win for the bears since now they have the momentum needed to aim for the $130 support line.
Image: LTC/USD daily chart
As we have mentioned initially, the 20-day SMA has proven to be a pretty robust resistance wall. This is further corroborated by IntoTheBlock’s IOMAP, which shows us that 87,000 addresses had purchased 4.66 million LTC tokens previously at this level.
It seems like the Litecoin Price is going to have a hard time overcoming this wall any time soon. The 4-hour chart shows increasing bearish momentum, which tells us that the price may drop to the 200-day SMA ($138.50).
Image: LTC/USD 4-hour chart
The Bulls Are Buying The Dip
IntoTheBlock’s “Daily Active Addresses” chart shows us that the number of addresses entering the protocol has jumped from 65,600 to 85,000. This is a positive sign since it tells us that the overall network is strengthening.
Litecoin Price Is Expected To Reach These Levels
If the bears retain their control, the price may drop to the $130 support wall. A further break takes LTC to the 50-day SMA ($130). On the upside, the 20-day SMA acts as a daunting resistance wall for the buyers.