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Litecoin price could drop 10% as LTC fails to conquer critical resistance level

  • Litecoin price is proven to be a very frustrating altcoin to trade for bulls.
  • Each time LTC bulls come in sight of $100, it undergoes a big fade.
  • As long as bulls can not position themselves correctly, another down move is likely to happen.

Litecoin (LTC) price sees bulls making it very easy to short LTC these past couple of weeks. Since March, it has been a near guarantee that if bears shorted near $100, a big fade would occur with considerable gains for them. 

On the other side, LTC bulls are each time dropping the ball in Litecoin price as soon as $100 gets mentioned by analysts, as profit-taking becomes too overpowering for the remaining position to withstand.

Litecoin price at $100 is still too big of a hurdle for bulls to take

Litecoin price paints a picture of bulls having stage fright. Since the end of February, whenever LTC has traded at $100, price action has broken down. Bulls do not look able to refrain from taking profit and sticking to their positions to break above that $100 handle finally.

LTC has already tanked 5% since Wednesday and is set to close out this week with another 5% decline, making the weekly loss around 10%. That is when bulls will step in around the monthly pivot at $85 and provide ample support. If they do not show up in that area, that 10% loss will become 20% as the next support only comes in near $75 in the form of the 200-day Simple Moving Average (SMA).

LTC/USD  4H-chart    

LTC/USD  4H-chart    

The 55-day SMA seems to be holding after a brief break lower in the ASIA PAC session on Friday. In case bulls can contain the profit-taking fade around $90, LTC bulls got a good opportunity to finally crack the code around $100. Expect next week to see another attempt at that level., If $100 breaks, LTC could swing towards $104, with 10% gains.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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