- Litecoin price expected to rise to $180 before moving towards $200
- The nearest support lies at $170
- LTC faces resistance in closing above the $180 price level
Litecoin price observed sharp bearish movement today as the price fell from above $180 to support at $170. While LTC observes a rise across the 7-day period, LTC seems hardpressed in defending the $170 support.
While the broader cryptocurrency market sentiment remains bullish, many assets have observed retracements from recent highs. As most assets record double-digit profits across the 7-day period, many major cryptocurrencies (including Bitcoin) have recorded losses across the last 24-hour.
Litecoin price overview: Litecoin price across the last ten days
After starting the year with little to no momentum on either side, Litecoin price found footing at the $125 level to initiate a bull rally. The price started a bull rally on January 2 that carried the price from the $125 level to highs of $174. However, the sharp bullish movement was not sustainable, and as the bullish pressure declined, the bears took over.
Subsequently, LTC failed to close above the level and declined to the $140 level. The buyers immediately recovered to $150 before starting another bull rally, albeit with a lower gradient this time.
Since the correction on January 4, Litecoin price has been trading inside a wide ascending channel that has supported the price to rise above the $170 level. While the price climbed above the $180 price level, LTC failed to stay above the level and fell back to the support level at $170, where it currently hovers.
Technical indicators and what to expect from Litecoin price
Across the technical indicators, the MACD shows declining bearish momentum as the two EMAs appear to be converging. This signals a bullish reversal, but that indication may be canceled if LTC falls below the $170.00 level.
The RSI remains neutral, suggesting that the Litecoin price has room for movement in either direction as the indicator hovers close to the 50 level.
The Bollinger bands show a similar sentiment and have converged steadily since January 5. While the indicator suggested increasing volatility earlier today, the recent candlesticks erased that notion. The indicator is in a squeeze suggesting LTC volatility may spike at any moment.
Overall, 17 of the 28 major technical indicators issue a buy signal, while only four indicators issue sell signals. Meanwhile, seven indicators remain neutral and do not indicate support towards either side.
Traders should expect Litecoin price to fall to the $160 level before initiating a bull rally. LTC can then be expected to rise above the $180 mark continuing its journey towards the $200 level.
Conversely, if Litecoin price falls below the $160 level, LTC may fall to the $150 level with the potential to fall to $130. However, that seems unlikely considering that the bulls have defended the $170 level twice in the past three days. As such, coupled with the positive technical analysis, LTC may be expected to rise to $180 by tomorrow.
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