Litecoin (LTC) is trading in the bullish trend zone as the price breaks above the moving average lines.
Long-term forecast for Litecoin price: bullish
The current upward momentum is encountering resistance at $72 or the 21-day line SMA. Litecoin has been trading above the $60 level since December 19. Buyers have successfully defended the current support, with the altcoin’s price fluctuating between $60 and $72. If the buyers overcome the $72 resistance, Litecoin will reach the $80 level again. The $72 resistance level represents the overbought zone of the market. The resistance was broken on November 23, when the market rose to a high of $80. At the $72 high, buyers are having difficulty breaking through the level. On the downside, selling pressure will pick up again when sellers break the $60 support. The altcoin will fall to a low of $47.
Litecoin indicators analysis
Litecoin is correcting upwards and is at level 51 of the Relative Strength Index for period 14, which means that supply and demand are in balance. Since the price bars are between the moving average lines, the cryptocurrency might be forced to move sideways. The altcoin is trading in the overbought area of the daily stochastic, which is above the level of 80. If sellers emerge in an overbought market, Litecoin’s price could fall.
Technical indicators
Resistance levels: $140, $180, $220
Support levels: $100, $60, $20
What is the next step for Litecoin?
Litecoin is currently trading in the overbought zone of the market. At the price levels of $72 and $80, the cryptocurrency asset is in an overbought condition. If it is rejected at the recent high, the altcoin will continue its movement between $60 and $72.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing in funds.
Source: https://coinidol.com/litecoin-reaches-overbought-condition/