- Litecoin price remains below the 50 twelve-hour SMA as buyers seem unmotivated to push prices higher.
- LTC would find significant support at $ 168 should the altcoin continue to lose momentum.
- Litecoin could see an 11% decline towards the demand zone if LTC doesn’t cut above a major resistance level.
Litecoin price wiped most of its gains over the past week as the recent market-wide crash saw LTC drop 27%. Although the altcoin has rebounded over 11% from its swing low, there is little scope for upward movement as buyers appear not to be interested in reversing the period of underperformance.
Litecoin price struggles with the reversal of the downtrend
Litecoin price has bounced back from the September 7th low, but reversing the downtrend could be difficult. On the 12-hour chart, LTC is trying to mark the 50 twelve-hour Simple Moving Average (SMA), which coincides with the 61.8% Fibonacci retracement level at $ 183. However, this level is currently acting as a strong resistance as trading volume has decreased.
Given the lower trading volume and reduced buying pressure, Litecoin price would find it difficult to overcome the above obstacle. Additionally, the Arms Index (TRIN), which measures general market sentiment, suggests there are currently more sellers than buyers, adding even more credibility to the declining outlook.
The first line of defense for Litecoin price is at $ 176, but further selling pressure could push LTC down to hit the 50% Fibonacci retracement level. This area can serve as meaningful support for the altcoin as the support line indicated by the Momentum Reversal Indicator (MRI) also suggests that buyers may intervene at this level.
LTC / USDT 12 hour chart
However, should Litecoin price collapse further, LTC could hit the 100 twelve-hour SMA, which is at $ 165, before entering the demand zone, which extends from $ 163 to $ 145. Lower values are not expected in the short term, unless another catastrophic event occurs.
Going forward, the bulls would have to cross the 50-twelve-hour SMA at $ 183 to resume the rebound in Litecoin price. To open up opportunities for additional upward movement, LTC must also clear the following hurdle at USD 189 for an uptrend to be confirmed.
Should the bulls come back to power accompanied by accelerated interest, Litecoin price could then target the 78.6% Fibonacci retracement at $ 205 before attempting to retest the swing high at $ 232.