Litecoin’s price volatility has surged, abruptly dropping below $120. Is a correction to $98 inevitable within the consolidation range?
As Bitcoin breaches the $80,000 mark, the broader market is witnessing immense selling pressure. Amid the crashing market, the short-term recovery in Litecoin quickly transitions into a bearish turn.
With an abrupt end to the 2-day recovery, the intraday pullback of 6.06% reflects increased price volatility. Litecoin has witnessed an 11% pullback over the past seven days, dropping its market cap to $9 billion.
Litecoin Under $120, Bullish Failure to Hit $110?
Litecoin’s daily chart price trend reveals a bullish failure to surpass the 50% Fibonacci level at $129.38. LTC reached a high of $131.95 yesterday but failed to sustain the bullish drive.
Following the higher price rejection, LTC witnessed an intraday pullback. Currently, Litecoin trades at a market value of $119, hinting at a potential pullback to the $110 support level
This creates a bearish engulfing candle, undermining the Morning Star reversal rally in Litecoin. The LTC price trend bounced back from the 61% Fibonacci level, and the short-term pullback is a warning of a potential retest.
The downfall has breached the 38.20% Fibonacci level at $121. Overall, Litecoin’s price trend maintains a sideways shift, with the overhead ceiling near $138 and the lower boundary near $98.
The current downfall will likely retest the bullish dominance near the 23.60% Fibonacci level at $111. The MACD and signal lines maintain a bearish alignment, while the daily RSI line fluctuates near the halfway level.
Hence, the technical indicators maintain a slightly bearish viewpoint on Litecoin’s price trend. Based on the Fibonacci levels, the bullish breakout of the overhead ceiling will likely drive the uptrend to the $150 psychological mark.
On the flip side, the immediate support for Litecoin remains at $111, followed by the $98 demand zone.
Analyst Marks Key Levels in LTC Price Trend
Adding to market sentiment, a recent tweet by Ali Martinez, the crypto analyst, projects a bullish trend criterion for Litecoin. According to the analyst, the LTC price rally must surpass the $136 resistance level for a bullish continuation. To confirm the uptrend, the analyst expects a daily candlestick closing above this resistance level.
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