TL;DR Breakdown
- Litecoin price expected to fall to $120.
- The closest support level lies at $130.
- LTC faces resistance in crossing above $140.
Litecoin price has failed to climb above the $150 level and declined to the $130 level. The price finds short-term support at this level but whether LTC recovers to $150 is yet to be seen.
The broader cryptocurrency market observes bearish sentiment as most assets record significant losses across the last 24 hours. These include Bitcoin and Ethereum that record a 11.07 and an 8.06 percent decline, respectively.
Litecoin price overview: Litecoin price across January
Litecoin price had a strong start to 2020 as the price traded above an ascending trendline. The incline continued till January 10, when the price reached the $180.00 mark. LTC faced strong resistance, and while the bulls broke above the level, the buyers were not able to hold the level, and LTC fell back.
Litecoin price observed a strong rejection at the level as the price fell to the $110.00 mark before stabilizing. The price recovered to the $140 level but did not climb to the $160 level until January 19. The price failed to climb above the level and has declined since. Today the price fell below the $140 mark and trades above the $130 support.
Technical indicators
Across the technical indicators, the MACD shows bearish momentum that seems to be increasing with the passage of time as the two EMAs continue to diverge further. The indicator would suggest a bullish reversal if LTC closes the day above the $130.
The RSI remains neutral but hangs low, suggesting bearish pressure at the price level. The indicator’s slope has declined in recent hours, suggesting an increasing bullish momentum. However, the indicator is still headed below, suggesting strong bearish pressure.
The Bollinger bands are expanding, suggesting increasing price volatility. Currently, the indicator is expanding in both directions suggesting potential sharp movement in either direction.
The four-hour technical analysis issues a strong sell signal as 19 of the 28 major technical indicators issue sell signals. On the other hand, only two of the indicators are issuing buy signals while the remaining seven indicators remain neutral, indicating no support towards either side.
The 24-hour technical analysis shares this sentiment as the analysis shows 12 indicators support a bearish trend. Meanwhile, six indicators issue buy signals while another 10 remain neutral. Overall, the indicator issues a sell signal suggesting further downwards movement.
What to expect from Litecoin price?
Traders should expect Litecoin price to decline, further falling towards the $120 support level before stabilizing. The negative technical indicators and the relatively low trade volume suggests further decay before the market stabilizes.
Conversely, if LTC holds above the $130 support level, LTC may observe a V-shape recovery to the $160 level. However, that seems unlikely, considering LTC failed to do so yesterday when the price rose to the $150 mark before falling back to current levels.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
