The situation still looks bearish in general

Litecoin has lost nearly two percent in the past 24 hours. The situation still looks bearish in general as LTC price has ended its deep correction and seems to retake downside direction. We have redrawn the red midterm descending trend line as the situation has changed. Bearish midterm scenario is still actual.

Let’s see what is happening on the hourly chart within the Fibonacci retracement. LTC price is close to 0.786 retracement level, which gives support to LTC/USD in the moment of writing. The currency pair has broken through the green ascending trend line and crossed several retracement levels as well as two support areas at $135.90 and $132.88.

The possible scenarios for Litecoin are the following:

1. LTC/USD will develop its downside progress and break through 0.786 retracement level. Sellers will have an opportunity to push the currency pair even lower towards the next support area at $129.79, which coincides with one retracement level.

2. The currency pair will jump off 0.786 retracement level and run upwards. The closest resistance area lies at $132.88. If buyers break it through, they will be able to drive the currency pair even higher towards 0.618 and 0.5 retracement levels. The next resistance area is at $135.90. It coincides with 0.382 retracement level.

3. There will be no significant changes in fluctuations.

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