⭐ Features

Litecoin Approaches Historical Level

  • Thomas Hughes
    ⭐ Features

    Litecoin is testing a key level that pushed price sky high last year: $30

Litecoin Approaches Historical Level

It seems like these days it’s all about what cryptocurrency is dropping less, which is in total opposition to the same time last year, when it wasn’t a matter of whether cryptos are going up but which one is gaining more on a daily basis.

Litecoin, just like everything else, has been in a downtrend for almost a year, but there’s a caveat; it is now testing a key level that pushed price sky high last year: $30.

Charts at a Glance – LTC/USD

Charts at a Glance – LTC/USD

The weekly chart above shows that Litecoin hit the current level multiple times during mid-to-late 2017, just before taking off to reach its peak a few months later. As mentioned on another occasion, technical levels can suffer a so-called “degradation” if they are not touched for a long while, becoming less important (price is not as responsive to them as before). However, considering the importance of this zone, it is most likely that we will get a reaction.

The Relative Strength Index is just entering oversold territory on the weekly chart, which holds a greater importance than oversold conditions on an hourly or daily chart, and this combined with the support zone at $30 - $35 can trigger a strong bounce North. On the other hand, a break of the support zone would show that bearish pressure is still too strong and that more downside will follow.

Support zone: 30 - 35

Resistance zone: 40

Most likely scenario: bounce higher from support

Alternate scenario: break below support and move into 25 area

Cover image via u.today
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About the author

Thomas Hughes is an executive editor of U.Today. He is a skilled cryptocurrency trader and technical analyst deeply immersed into the cryptocurrency & blockchain technology area.

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