The Litecoin(LTC) price dramatically dropped after the $124 resistance fakeout on April 5th. As a result, the altcoin descended 18% and sank to its last quarter bottom support at $100. However, the LTC price bounced back from the mentioned support, indicating a dip opportunity for long traders.
Key points
- The $100 support level maintains a strong accumulation zone
- The intraday trading volume in the Litecoin coin is $748..5 Million, indicating a 1.47% gain.
Source- Tradingview
On March 24th, the LTC/USDT pair broke out from a three-month-old falling wedge pattern, indicating the dawn of a new bull rally. However, amid the uncertainty in the crypto market, the sellers plunge the altcoin below the $103 level, suggesting a fakeout.
The aggressive traders who bought after the trendline breakout may have liquidated their coins, which intensified the selling momentum. As a result, the altcoin tumbled by 18.3% and slumped to the last quarter’s bottom support near $100.
The LTC price rebounded from this support level with a morning star candle, projecting a 7.57% gain. Traders who bought this dip can maintain a stop loss of around $94.9 or $84.5, depending on their risk appetite. The renewed bullish momentum may drive the altcoin to overhead resistance at $124.
Alternatively, if the sellers gave a decisive breakdown and candle closing below the $100 support, the altcoin could descend 30% to the $68.5 mark.
Technical indicator
Stochastic RSI: A positive crossover of the K and D line bolsters a bullish reversal from the $100 support.
DMA– The downsloping DMAs(20, 50, 100, and 200) reflect an overall bearish trend for the LTC/USDT pair. Moreover, a potential crossover between the 20 and 100 DMA may interrupt a steady recovery.
- Resistance level- $124 and $140
- Support levels- $100, and $90
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/litecoin-price-analysis-potential-bullish-reversal-aims-12-5-hike-in-ltc/