While most altcoins have seen a slight decline this week, Litecoin’s price has remained strong and has shown signs of strength on a daily basis and seems to have reached a rejection point where a fresh decline could occur.
Litecoin’s market structure remains bearish on the daily chart after forming lower lows and lower highs over the past few months.
However, the price recently retraced from its yearly low and faced a minor hurdle at the $62 resistance level. Buying volume increased this week and the price broke through this resistance level. The $67 level has become an obstacle for the bulls since yesterday, but they have not given up.
As can be seen on the chart, the price is still strong on the day. A move above this price level should result in a retest of $67.5 – the June low – which is currently considered a key resistance for buying on the daily chart.
Rejection of this key resistance may result in another major sell-off that could plunge the market into the $45 and $40 zones. However, if LTC manages to continue falling above the June high, we can consider a minor shift in structure before reclaiming the yearly high of $113 for a major breakout.
Currently, the bears still have the upper hand in the long term. We can expect the bulls to take control again when the market enters an oversold state.
The most important LTC level to keep an eye on
Even if the bulls manage to break the $67.5 resistance level, they need to overcome the $72 and $77 resistance levels before gaining control.
The recently overcome resistance of $62 is now acting as a support. If the price breaks below it, the $55.4 and $49.8 levels are the next supports to consider in case of price declines.
Important resistance levels: $67.5, $72, $77
Important support levels: 62 USD, 55.4 USD, 49.8 USD
- Spot price: $65.7
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before purchasing any cryptocurrency or investing in any service.
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