After many failed breakout attempts over $50 for the past couple of weeks, Litecoin was being traded at $44.62 at the time of writing. The seventh-largest cryptocurrency by market cap, LTC’s price has been consolidating below the aforementioned level. Following the latest drop in the market, Litecoin slid below the crucial level of support at $45 which now acts as resistance.
Litecoin 1-Hour Chart:
Source: LTC/USD on TradingView
Following the latest dip, price candles went below 50 DMA [Pink] which had previously formed a support for the coin after a bullish crossover with 100 DMA [Blue]. LTC also slid below 100 DMA. This was, however, short-lived as the upward price movement catapulted the price to climb over it. Its price was in a consolidating phase and a movement on either side could take shape. It is yet to overtake 50 DMA which was now resisting the coin’s upward price action.
Source: LTC/USD on TradingView
RSI moved in tandem with the coin’s price action of the coin and fell to the oversold region when LTC dropped to $42. While it recovered and hovered above 50-median neutral zone soon after, it was now hovering below the said mark, depicting sell-pressure engulfing the LTC market.
If this trend persists, the coin could revert to its support zones. LTC has been severely resisted by the 50 DMA near $45 level. According to VPVR indicator, other points of resistance stood unbreached at $46.13 and $46.85. Target points for a downside price action stood at $43.49 close to 100 DMA and the subsequent support level was at $42.21.
According to Coin Metrics’s chart, LTC-BTC correlation coefficient stood at 0.874 indicating a strong correlation which was evident by Bitcoin’s recent bearish price action which drove the silver cryptocurrency to fall strongly against the USD. If Bitcoin manages a surge in the near-term, this could propel Litecoin to post a bullish reversal.
However, the chances of a potential surge in the short-term LTC chart appeared bleak as it signaled another downside correction to target points $43.49 and $42.21 on the 14th of June.
