Litecoin has settled above $42 after a series of downward moves in May when the coin reached the overbought region. The crypto has a major breakdown that plunged it to $39 low.
Immediately the bulls corrected upward, the market was stalled at $46. Sellers were unrelenting as the market dropped again to the $42 low. At the current support, the price rebounded but was repelled at the $44 minor resistance.
For the past five days, LTC has been fluctuating above the $42 support. Buyers have failed to push the price above $44 minor resistance. Since the coin reached the overbought region, the downward move has been gradual. The crypto risks further depreciation to $39 if buyers fail to push the price above the current resistance.
Litecoin indicator analysis
Buyers also made concerted efforts to break above the downtrend line but to no avail. LTC would have resumed uptrend if the bulls breach the downtrend line and close above it. LTC is below the 40% range of the daily stochastic. However, the price action is indicating a bullish signal.
Key Resistance levels: $80, $100, $120
Key Support levels: $50, $40, $20
What is the next move for Litecoin?
Litecoin is struggling above $42 after being repelled from a minor resistance at $44. However, the price is presently below the EMAs which is an indication of a further downward move. However, if price rebounds and breaks above the EMAs, LTC may rise to revisit the previous highs.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.