- Litecoin is down after two failed attempts to adopt the 200-day Simple Moving Average.
- Sellers have taken over from buyers and price moves are continuing down.
- A return to the range between $ 135 and $ 156 seems like the most sensible move to attract buyers again.
On August 16 and again on August 23, Litecoin (LTC) attempted to hit the 200-day Simple Moving Average (SMA). Both tests failed and what followed each time was a quick reversal. After August 16, the green rising trendline from July 21 could provide enough support for buyers to stay in the rally and build momentum for a second attempt.
When the backbone is gone, the price will fall like a pudding
The second attempt at the 200-day SMA, hovering around $ 193, failed again, but this time the rejection was so strong that it broke the green ascending trendline. After the rally’s backbone was broken, sellers eagerly saw their expected queue to hop in and start selling. Buyers tried again to reclaim this but were turned back against this green ascending trendline and the monthly R2 resistance level at $ 181.56.
The general sentiment isn’t helping either as most of the major cryptocurrencies are in a very nervous place in the red and global markets.
LTC / USD daily chart
LTC is looking for support that could be found at $ 163 in the short term. This level falls in line with the monthly R1 resistance, although this level has already been reduced quite sharply in the past few weeks. Expect another downtrend towards USD 160.
This level could be critical for short sellers to take profits. Buyers can jump in here and even turn it into a show business. Once you get below $ 160, expect to drop into the red between $ 138 and $ 156. This region will again act as a sales zone, where buyers and sellers give up the position, so buyers should be able to reclaim it here. Add the 55-day SMA as an additional factor and then expect to climb back to $ 180 once that litecoin correction is behind it.