Following the latest market dip, Litecoin’s value lost momentum and fell close to its previous support level. At the time of writing, LTC was being traded at $41.14. The seventh-largest cryptocurrency had noted a minor uptick over the past couple of weeks which coincided with rising on-chain metrics. However, the abrupt fall further dragged the coin’s price and a bullish revival might have to wait.
Litecoin 6-Hour Chart:
Source: LTC/USD on TradingView
Litecoin’s price candles on the above short-term chart appeared to be oscillating between trendlines of a descending parallel channel which demonstrated the coin’s price movement over the past couple of days after suffering multiple pullbacks. A bullish breakout was expected on completion of pattern formation. However, in the short-term, an upside break might not materialize.
This was supported by placement of the daily moving averages. 50 DMA [Pink] continued to hover above 100 DMA [Blue] after a bullish crossover in the first week of June. DMAs appeared to be converging with 100 DMA climbing higher, a trend that was prompted by the downward price action of the coin, and the falling 50 DMA. A bearish crossover was anticipated as both DMAs were above the LTC price candles, resisting an upward price action.
Source: LTC/USD on TradingVeiw
Further validating the presence of the bearishness was RSI indicator. Closely following the price action of the coin, RSI dropped to the oversold region. Despite a short-lived breakout above the 50-median line, RSI has been critically rejected at this point. However, at press time, the selling pressure appeared to be very high and a correction could be likely, meaning LTC’s price has formed a bottom.
As depicted by the above charts, Litecoin’s price in the short-term was predicted to remain in a bearish territory as selling activity continues to drag the coin’s price. LTC’s immediate support stood at $39.01. If this level is breached, the decline can extend to $37.53, a level not seen since the first week of April while the coin faced severe resistance at points $43.05, close to the 100 DMA, and by the 50 DMA at $44.3. Another point of hurdle for the coin stood firm at $46.12.