Hello everyone! Today, we're looking at the Litecoin daily chart and forecasting what we can expect from LTC over the next few weeks or days the way this market is dropping. Let's get to it!
On the daily chart, Litecoin has crossed below the 200 EMA (blue) representing a strong long-term bearish movement. Back in February, Litecoin found support at the 200 EMA and it's reasonable to expect a similar short-term bounce back. However, I want to bring attention to the the volume indicators at the specific price points represented on the y-axis of the of the daily chart. The trade volume below the 200 EMA is significantly less than the bullish pressure above the 200 EMA. Over the next couple of days / weeks, the LTC / USD price may approach critical levels of support entering our double bottom target at $100 with base line support at the black LT support trend line target around $80-90 which represents a pivotal point for the bullish rebound.
The double bottom target entry is supported at the 100% FIB retracement line and represents the historical trade volume support. We expect the bulls to take control of Litecoin at this level.
There is heavy resistance at the 61.8% FIB retracement level which is hovering around $220 target. Litecoin tested and was rejected at 61.8% indicating strong bearish pressure. This coincides with the resistance found at the 50 EMA (green) which rejected any bullish momentum needed to break the blue resistance trend channel.
Litecoin did lead BITFINEX:BTCUSD on the bullish rebound from the February lows to spring the bullish momentum. Litecoin could do it once more if / when it approaches the needed levels of support to once again pull us out of the bearish trend to push past the 50 EMA and resistance at $220.