Litecoin Price Prediction: Overpriced LTC Faces Bearish Correction
Daily Litecoin LTC Technical Analysis
- Litecoin price had flashed several signals to show that it’s no longer overpriced.
- The RSI has dipped back into the neutral zone..
The Litecoin price bounced up from the 50-day SMA on April 26 and went from $225 to May 5 on $355 – breaking past the $350 psychological level. During this upward surge, LTC managed to flip the 20-day SMA from resistance to support, and jump above the Bollinger Band. After three massive bullish days, the bears stepped back in to correct LTC.
Litecoin Price Drops Back Into The Bollinger Band
After crossing the $350 psychological level, it seems like the holders have started selling off their tokens as Litecoin price dropped to $338.50. Prior to this drop, LTC had flashed two signals which clearly indicated that it was overpriced:
- The price had crossed above the Bollinger band.
- The relative strength index (RSI) had crawled above 70.
The recent drop has negated both these signals, showing that LTC is now neutrally priced.
Image: LTC/USD daily
Looking at the IOMAP, the $330 support wall is pretty solid. Around 73,000 addresses had purchased a little more than 1.3 million LTC tokens here. If the Litecoin price falls, this level will eat up a lot of selling pressure.
Litecoin Price Is Expected To Reach These Levels
As of now, the Litecoin price is dropping towards the $330 support wall. A further break will take LTC to the $300 psychological level.