Litecoin Price Prediction: LTC could drop lower, but overall structure remains bullish
- Litecoin price shows an increase in short-term bearish momentum that has led to a 4% decline.
- A breakdown of the immediate demand zone extending from $352.16 to $365.26 will result in a 7% drop.
- Investors can expect buyers to scoop up LTC at a discount, catapulting it upward by 25% to $413.
Litecoin price shows a bearish bias that could result in a sell-off to a pivotal support barrier. A bounce from this level seems likely to push LTC to retest its recent swing high.
Litecoin price needs to reset
On the 4-hour chart, Litecoin has formed a lower high after setting up a swing high at $413.46 on May 10. Since then LTC has slid 14% to where it currently trades, $380. Now, a sudden increase in short-term selling pressure could push Litecoin price to the immediate demand zone that ranges from $352.16 to $365.26.
A bounce from this level seems likely but is not set in stone. Therefore, investors should exercise caution around this area of support.
However, if the bearish momentum continues to build up, then LTC could slide to a demand barrier at $333.52, which could serve as a potential reversal point. This level was flipped from resistance to support on May 5 and has provided Litecoin price a firm footing to surge higher.
Therefore, a bounce from this area could propel Litecoin price upward by roughly 25% to retest $413. If the bullish momentum persists, LTC could climb another 8% to tag $446.32, coinciding with the 127.2% Fibonacci extension level.
LTC/USDT 4-hour chart
On the flip side, a breakdown of $292.65 will invalidate the bullish narrative and invoke an 8% sell-off to $268.69.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
