• Litecoin has dipped lower after two failed attempts to take over the 200-day Simple Moving Average.
  • Sellers have taken over from the buyers, and price action is descending further down.
  • A return to the bandwidth between $135 and $156 looks like the sanest move to attract buyers again.

On August 16 and again on August 23, Litecoin (LTC) tried to reach the 200-day Simple Moving Average (SMA). Both tests failed and what followed each time was a quick reversal. After August 16, the green ascending trend line, originating from July 21, could provide enough support for buyers to stay in the rally and build up momentum for a second attempt.

With the backbone gone, the price will drop like a pudding

The second attempt on the 200-day SMA, hovering around $193, failed again, but this time the rejection after that was so heavy that it broke the green ascending trend line. With the backbone of the rally broken, sellers eagerly saw their awaited queue to step in and start selling. Buyers reattempted to reclaim but got rejected to the downside against that green ascending trend line and the monthly R2 resistance level at $181.56. 

The general sentiment is not helping either, with most major cryptocurrencies in the red and global markets in a very nervous place.

LTC/USD daily chart
LTC/USD daily chart

LTC is looking for support that might be found short-term at $163. That level falls in line with the monthly R1 Resistance, although that level has been chopped up already quite a lot in the past few weeks. Expect a further run downwards toward $160. 

That level might be a key one for short-sellers to take profit. Buyers can already step in here and even make it a fade-in trade. Once below $160, expect to dip in that red band region between $138 and$156. This region will act again as a distribution zone where buyers and sellers will hand over the position, so buyers should be able here to reclaim. Add the 55-daily SMA in as an additional factor, and then expect a run-up again to $180 once this correction is behind for Litecoin.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Crypto Sleeping Giants: Hedera Hashgraph price could shock the world

Crypto Sleeping Giants: Hedera Hashgraph price could shock the world

HBAR price shows a drop in volume amidst the current downtrend. Hedera Hashgraph has the potential to rally towards 2000%. Traders should keep the smart contract alternative token on their watchlists and consider a dollar cost average approach for investing. 

More Cryptocurrencies news

Solana Price Prediction: How many hacked wallets does it take to spark a bull run?

Solana Price Prediction: How many hacked wallets does it take to spark a bull run?

Solana price continues to show mixed signals during the 2nd trading week of August. While several cryptocurrencies have displayed bullish vengeance, the centralized smart contract token has failed to reconquer losses experienced since May 12.

More Solana news

Is a 75% decline still possible for the Ethereum Classic price?

Is a 75% decline still possible for the Ethereum Classic price?

Ethereum Classic price rallied 100% between July 12 and July 24 before a short consolidation unfolded. After a few shallow days of sideways congestion, the Ethereum Classic price kicked off another 90% rally. Invalidation of the uptrend is dependent on $13 holding as support.

More Ethereum Classic news

Ethereum Price Prediction: Get ready for a Wall Street discount

Ethereum Price Prediction: Get ready for a Wall Street discount

Ethereum price breaches target one at $1800, which was mentioned in July’s market bottom thesis. ETH price shows an influx of deposits on all exchanges. The midterm bullish forecasts are dependent on $1250 holding as support.

More Ethereum news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP