- Litecoin price has declined below the $110 level.
- Price faces strong resistance in crossing the level.
- LTC expected to decline to $90 if bears breach $100 support
Litecoin (LTC) price has declined below the $110 level after climbing above the $120 level last week. Litecoin failed to maintain a foothold above the $120 price level and the price action was sharply rejected retracing to the $100 psychological support level.
The bullish momentum in the broader cryptocurrency market has also vaporized as the prices of most major cryptocurrencies record losses across the 24-hour frames.
Litecoin price across December
Litecoin price started December by completing a V-shaped recovery to the $90.00 level. However, the bullish momentum died at the level, and the price did not climb further. As the bullish momentum exhausted, the bears started to dominate the market with the price declining from $90.35 to the support level at $70.00 level between December 3 and December 11.
The bulls defended the $70.00 support level, and the price made a smooth recovery to the $80.00 level before meeting resistance. While the price action stagnated at the level, the market sentiment only grew more bullish, and the price continued rising after a brief rest at the level.
On December 16, the bulls completely dominated the markets, and the price observed a sharp spike rising from $80.00 to $110 by December 18. The price action faced resistance at the level and Litecoin price consolidated at the level for the 46 hours before breaking above. However, the price could not maintain support above the level and declined below the resistance level.
Currently, Litecoin price is trading below the $110 level as the price has made a recovery from the $100 support level. However, the bullish momentum seems feeble as LTC fails to close above the $110 level.
Across the technical indicators, the MACD shows increasing bearish momentum as the two EMAs diverge further. Meanwhile, the RSI remains neutral and hovers close to the 50.00 level, showing room for movement in either direction. Similarly, the Bollinger Bands remain wide, showing potential volatility in the short-term.
Traders should expect the price to observe sideways movement between $100 and $110. Price can be expected to retrace towards the $90 level if buyers fail to hold the $100 psychological level. However, if the buyers are able to make a V-shaped recovery to the $120 resistance level price may break out towards the $130 level.
Litecoin price across the 1-week frames
Across the weekly frames, we can observe that Litecoin price has been trading above an ascending trendline which acts as a support for the price action. However, the last week’s candle breaks above the Bollinger bands, causing the price to leave the support line of the channel.
The price action has also failed to maintain a foothold above the level, and as such if the price declines below the $100 mark towards the support line, Litecoin may decline towards the centre of the Bollinger bands at the $80.00 price level