- 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 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.
Recommended Content
Editors’ Picks
Solana price sustains recovery rally despite falling daily active addresses

Solana price shows strong bullish momentum, which has seen the Ethereum killer break out from a descending parallel channel. Strangely, the daily active addresses on-chain metric fails to mirror this optimism, which is unorthodox considering the two parameters conventionally to go hand in hand.
ImmutableX price rallies by 40% in 24 hours, but whale activity remains weak

ImmutableX price rise astonished the market as the altcoin led the crypto market rally on Tuesday. The altcoin hit a 45-day high and, managed to flip many of the resistance levels into support floors. The reason behind the rally is unknown, but the whales seem to be active once again.
US House Committee passes bill to prevent issuance of CBDC

The United States is a landmine of regulatory trouble for the crypto space, but the technology behind it was being pursued for adoption. However, the application of this technology is also being objected to by many, attempting to end things before they even begin.
Optimism price outlook as network sells 116 million OP tokens

Optimism network has revealed plans to start selling 116 million OP tokens in a private sale immediately. At current rates, these tokens are valued at approximately $162.4 million but the transfer is not expected to impact market price.
Bitcoin: BTC contemplates crash in September

Bitcoin price remains unfazed by the US CPI announcement on September 13 and continues to move in a range. The weekly chart, however, shows a potential short-term recovery rally that could set the stage for a steep correction.