Will Litecoin (LTC) Still Plunge Lower?

The value of Litecoin (LTC) could be done with downward correction as it looks like it’s forming a double bottom. The digital currency could be in for a reversal from its recent declines against Bitcoin (BTC) and the U.S. dollar. Litecoin (LTC) has found a strong support and it is set to break over its major hurdle in the short-term.

Litecoin (LTC) Price Today – LTC / USD

Name Price24H (%)
Litecoin (LTC)
$23.33
-3.96%

At the time of writing, Litecoin (LTC) is trading at $56 after a decrease of less than one percent over the past twenty-four hours. The current market cap of the digital currency is $3.25 billion and its trading volume over the past twenty-four hours is $227.36 million.

Litecoin (LTC) Price Technical Analysis

The 100-hourly simple moving average is over the longer-term 200-hourly simple moving average to indicate that the path of least resistance is currently heading higher. This means that the upward trend is more likely to continue than to reverse. Nevertheless, the gap is a bit tight so a bearish crossover might be possible while the moving averages also hold as dynamic resistance.

As a result of this, another test of support close to the $48 mark is likely to happen. Strong selling pressure might even cause a break beneath this mark and a continuation of the longer-term downward trend. A break over the moving averages could open the doors for more gains towards the $70 mark.

This would make the double bottom close to $22 in height, which indicates that confirmation could result in a rally of the same height. Nevertheless, the relative strength index is heading downwards from the overbought territory to indicate a return in bearish pressure. Stochastic oscillator is also heading downwards so a pickup in selling pressure is due.

Litecoin (LTC) had a positive start this week, though, there is no negative news yet in the industry. If this trend continues, the digital currency might break the $60 mark and head for the $70 mark by this weekend.

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