Litecoin Price Analysis: LTC finding support around $150 after a rapid downtrend

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  • On the same day, Litecoin price dropped to $150.73 during intraday trading.
  • LTC dropped another 13% after it broke out at $182 last Friday.
  • The volume of trading has increased by 31% to further validate the concerning trend.

LTC/USD is down to $150.73, a new low for the year. This week, Litecoin‘s price decline has accelerated, with the coin declining as far as $150. On September 7, LTC reached a 30-day high of $231.33 before experiencing a severe sell-off in the weeks that followed.

Litecoin’s price then rose to $189 during a consolidation period, bringing the project’s total market value to nearly $1 billion. Since then, the currency has witnessed significant selling in the market, sending it back to $160.27 as of this writing. 

On the 24-hour chart of Litecoin price activity, red candlesticks have dominated recent trading sessions, confirming the bearish outlook. The Relative Strength Index (RSI) is at a depressingly low 39, indicating that there was no buyer interest in the currency.

At the moment, the price is not expected to rise anytime soon. If price can prevent any additional selling and maintain above $160 support, a consolidation there might be the best possible outcome for LTC.

LTC/USD 4-hour chart: LTC set to reverse from the $165 support? 

On the 4-hour chart, we can see that the Litecoin price is making a move to reverse higher as the $165 support level has provided strong resistance.

Litecoin Price Analysis: LTC finding support around $150 after a rapid downtrend 1
LTC/USD 4-hour chart. Source: TradingView

The Litecoin price has risen by over 80% from the previous swing low of $105. However, further advances were unable to be made during the last weekend, with only a slightly higher high set.

The price of Litecoin corrected to $230 after reaching $250, where it found support. The previous resistance point, around $165, was achieved on Monday and has provided solid protection thus far.

Overall, unless the $165 support line breaks, we should expect LTC/USD to reverse over the weekend and resume its path to the $190 major resistance. The next objective for Litecoin to breach is $200 once the $190 has been broken.

Litecoin Price Analysis: Conclusion 

The Litecoin price is on the rise today, as investors continue to trust in the $165 support after a severe sell-off last week. As a result, we believe that bears are spent, and LTC/USD will seek to recoup some of its losses over the next 24 hours.

Source: cryptopolitan.com

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