The price of Litecoin has fluctuated over the last two months. However, its price has been largely rangebound as well, with the altcoin struggling to break through the $240 barrier on several occasions. This has also been the case over the last week, with the cryptocurrency relying on its immediate level of support to keep its price stable.
LTC was trading at $203.5 at the time of publication, with a market capitalisation of $13.6 billion. Though the coin gained just 3% in the last seven days, its 24-hour market activity seemed to indicate that a pattern turnaround was imminent.
Litecoin 1-day chart
LTC has traded between its resistance level of $243 and its second level of support of $153 over the last two months. The coin struggled to crack through this opposition earlier this week, and history has replicated itself, relegating LTC’s price to the $200 mark.
The coin was being held by the support at $193 at the time of publication, and with the buildup of bearish momentum, it could even head towards the second support at $159.
This will provide traders with short positions with an excellent chance to benefit.
The technical indicators for Litecoin painted a bearish image for the coming week. Despite slipping marginally into the oversold zone, the RSI indicator was in the neutral zone.
The MACD indicator was already on the brink of a bearish crossing, and if the Signal line crosses far above the MACD line, traders should expect LTC’s price to fall lower.
Important levels to watch out for
Support: $193, $157
Take Profit: $161
Stop Loss: $240
LTC could be on the brink of a pattern reversal, with a drop to the $157-range possible if the $193-support level fails. This is largely due to the large support range LTC has built up in the past around its second support, a level that will help stabilise LTC’s price if the bears win over the market.
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