Despite Litecoin (LTC) trying to rise in price, in its 4- hour trading chart, the bears proved to be too strong. The broader market weakness could be one of the causes of LTC’s downward price movement.
At the moment, the closest support level for LTC is $45 and the price of the crypto was trading very close to this point. Unfortunately, the latest drop in the LTC price invalidated LTC’s weekly gains. If LTC sees even the slightest bit of demand, it could push the price above the $50 price mark.
Litecoin / U.S. Dollar 4h (Source: TradingView)
A price analysis of LTC’s 4-hour chart reveals that LTC was trading at $48. There are also other support lines; one at $47 and the other at $45. Specifically, these support lines point out the possibility of LTC dropping further only if it goes below the support levels. LTC could visit $47 and then move down to trade at a lower level.
The resistance for LTC rested at $50. If the demand for crypto rises, LTC could rise above the $50 level. In order for the bearish thesis to be invalidated, LTC has to trade above the $51 level for an extended period of time.
Unfortunately, the amount of LTC that was traded in the last session saw a drop which indicates a fall in buying strength. As soon as LTC lost the $50 support, buyers started to quit the market.
The RSI showed a small pitch which signals LTC’s struggle to recover in the market. Also, its price is currently under the 20-SMA line which means that sellers are now in control of the market. The RSI is also below the half-line which proves the overpowering selling pressure for the crypto.
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Source: Cryptocurrency - investing.com
