Litecoin price recovery in jeopardy as LTC buyers show little intention of overcoming resistance

  • Litecoin price is stuck below the 50 twelve-hour SMA as the buyers seem unmotivated in lifting prices higher.
  • LTC would discover meaningful support at $168 should the altcoin continue to lose momentum.
  • Litecoin could see an 11% drop toward the demand zone if LTC fails to slice above a key resistance level. 

Litecoin price erased most of its gains over the past week as the recent market-wide crash witnessed LTC plunge by 27%. Although the altcoin has recovered by over 11% since its swing low, there is little room to move toward the upside as buyers seem uninterested in reversing the period of underperformance.

Litecoin price struggles with reversing downtrend

Litecoin price has seen a bounce from the September 7 low, but a reversal of the downtrend could be tough. On the 12-hour chart, LTC is attempting to tag the 50 twelve-hour Simple Moving Average (SMA) coinciding with the 61.8% Fibonacci retracement level at $183. However, this level currently acts as stiff resistance as trading volume has diminished.

Given the lowered trading volume and decreased buying pressure, Litecoin price would find it challenging to tackle the aforementioned obstacle. In addition, the Arms Index (TRIN), which gauges the overall market sentiment, suggests that there are currently more sellers than buyers, adding credence to the bearish outlook.

The first line of defense for Litecoin price is at $176, but further selling pressure may push LTC lower to tag the 50% Fibonacci retracement level. This area may act as meaningful support for the altcoin, as the support line given by the Momentum Reversal Indicator (MRI) also suggests that buyers may step in at this level.


LTC/USDT 12-hour chart

However, should Litecoin price see further collapse, LTC could reach the 100 twelve-hour SMA that sits at $165 before entering the demand zone that stretches from $163 to $145. Lower levels are not expected in the near term unless another catastrophic event materializes.

Moving forward, the bulls would need to slice above the 50 twelve-hour SMA at $183 to resume recovery for Litecoin price. To open up opportunities for additional upside moves, LTC must also overcome the following hurdle at $189 for an uptrend to be confirmed. 

Should the bulls come back into power, accompanied with accelerated interest, Litecoin price may then aim for the 78.6% Fibonacci retracement at $205 before attempting to retest the swing high at $232. 

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

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu price to erase half of the losses incurred and tag $0.000028

Shiba Inu (SHIB) has shed around 40% of its value due to concerns in global markets about the FED rate decision this evening against a background of geopolitical turmoil.

More Shiba Inu News

XRP presents buying opportunity before breakout to $1

XRP continues to test a new support zone in the $0.60 value area. Bottom likely in for XRP, relief rally, or trend change incoming. The Point and Figure chart shows a bullish entry opportunity.

More Ripple News

Cardano primed for relief rally towards $2.20

A brief technical and on-chain analysis on Cardano price. FXStreet's analysts evaluate why ADA could rebound swiftly. 

More Cardano News

IMF pushes El Salvador to drop Bitcoin as legal tender

The International Monetary Fund (IMF) has told El Salvador to remove Bitcoin’s status as legal tender. The IMF directors stated the move was due to concerns around financial stability, integrity and consumer protection.

More Cryptocurrencies News

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis