After yesterday’s sell-off that sent many altcoins to a new multi-month low, LTC found a solid ground and bounced back with a rejection. It remains bearish but has posted a notable gain amid the latest recovery.
Litecoin’s bearish trajectory became more significant in the last few days following the new sell order from $96.5 in late March. The drop was less notable until last weekend when the market experienced a high supply.
This caused serious fear, uncertainty and doubt (FUD) yesterday as the crypto crashed to its lowest level in six months as institutional investors sold off. This triggered a lot of panic, but the $63 level provided support, and the selling stopped.
The price increased overnight and posted a major gain today amid the latest recovery. The bulls are currently in charge and are likely to sustain pressure throughout today. Technically, this move looks more like a retest pattern of a recent breakdown. We can anticipate more dips when the selling pressure increases.
However, it is important to note that LTC’s bearish structure is still intact on the mid-term scale. A continuous dip should set the stage for more losses as the market gradually enters a mid-term bearish season. The sell-off appeared to have reached the targeted level in the short term.
LTC’s Key Level To Watch
Source: Tradingview
In the meantime, we may see relief if the price continues to recover daily. The potential resistance level for a test is $80, followed by $88.6 and $96.5 above.
Anticipating the next leg down, LTC must dip below $70 and the current $63 low that provided support yesterday before testing a low of 58.
Key Resistance Levels: $80, $88.6, $96.5
Key Support Levels: $70, $63, $58
- Spot Price: $73
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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