Litecoin Is Cooling Off, Where Might Support Be Found?

Litecoin LTC/USD has been cooling off after pushing higher the past few days. The crypto looks like it is starting to make a bounce and could be ready to push higher again soon. If unable to bounce, the crypto could see a bounce near previous resistance.

Litecoin was down 4.28% at $224.98 Wednesday afternoon at publication.

Litecoin Daily Chart Analysis

• Litecoin saw a breakout and pushed much higher after breaking resistance in an ascending triangle pattern. The coin is now dipping back down and could find support where resistance once was.
• The $200 level held as resistance for a time before the break, but after the breakout it may become support. The price is fading back toward this area and is looking to see if it can make a bounce.
• The crypto trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the crypto is seeing bullish sentiment.
• Each of these moving averages may hold as an area of support in the future.
• The Relative Strength Index (RSI) has been falling back lower the past few days and now sits at 52. This shows many sellers have entered into the market, but overall there are still more buyers.

What’s Next For Litecoin?

Bullish traders want to see Litecoin bounce and start to head higher. If unable to bounce now, they are looking to see the coin find support near the $200 level. Bulls are then looking for higher lows and for the coin to start moving back up once again.

Bearish traders are looking to see the coin fall below the $200 level and be unable to cross back above it. If this level can hold as resistance again, it shows the crypto is not yet ready to stay above the level and could promote further selling. Bears are then looking to see the stock fall below the higher low trendline for a possible bearish trend to start.

Photo: Michael Fortsch via Unsplash