Litecoin stays below a downside resistance line

JFD Team JFD

LTC/USD traded lower yesterday, after it hit resistance at 74.10, but the slide was stopped at 64.35. The crypto has been trading between those tow barriers since May 13^th, and thus, we would consider the very short-term bias to be neutral. However, zooming slightly out, we see that Litecoin remains well below the downside resistance line taken from the high of March 30^th, and thus, we see more chances for traders to exit the latest range through its lower end.

Such a break could invite more bears into the game, who could dive towards the low of May 12^th, at 50.55. If they don’t stop there, then a break lower would confirm a forthcoming lower low on the daily chart and could extend the slide towards the 41.00 barrier, which acted as an important support zone between May and September 2020.

The RSI lies below its 50 line and points down, while the MACD runs below both its zero and trigger lines. Both indicators detect downside speed and support the notion for this crypto breaking below the 64.35 support zone soon.

We will abandon the bearish case only if we see a clear break above the 97.80 barrier, which acted as a key support between April 25^th and May 3^rd. Such a move will most probably also confirm the break above the downside resistance line taken from the high of March 30^th, and could initially target the peak of May 5^th, at around 106.75. Another break, above 106.75, could extend the advance towards the high of April 21^st, at 114.70, the break of which could carry more bullish implications, perhaps setting the stage for advances towards the high of April 5^th, at around 127.15.