Litecoin Rejected At $55, Bears Might Drag LTC Below Immediate Support Line

Litecoin attempted to rise on its chart, however, the bears were still strong on the chart. Although the coin showed some recovery, technical outlook pointed towards further decline. Bitcoin too has lost steam as the coin plunged below the $20,000 mark.

Broader market weakness can be attributed to Litecoin’s downward price movement. Closest support line for LTC stood at $45 and the price of the coin was trading very close to the aforementioned support level. The latest drop in price over the past 4 days have invalidated LTC’s weekly gains.

Ever since Litecoin lost the support of $50, the coin has been on a consistent downfall. Buyers have existed the market and that has caused LTC to further plunge in value.

With the slightest bit of demand, LTC could push upwards and cross above the $50 price mark. The global cryptocurrency market cap today is $924 Billion, with a 0.2% positive change in the last 24 hours.

Litecoin Price Analysis: Four Hour Chart Litecoin was priced at $48 on the four hour chart | Source: LTCUSD on TradingView

LTC was trading at $48 on the four hour chart. The nearest support line rested at $47 and then $45. The technical outlook pointed towards LTC’s possibility of dipping further on the chart. It might revisit $47 and then could trade at a level lower.

The overhead resistance for the coin awaited at $50. If demand for the coin rises then LTC might move above the $50 price level. For the bearish thesis to be invalidated, the coin has to trade above the $51 level for a considerable period of time. The amount of Litecoin traded in the last session dropped indicating a fall in buying strength.

Technical Analysis Litecoin displayed fall in buying strength on the four hour chart | Source: LTCUSD on TradingView

The altcoin noticed a sharp decline in buying strength over the past few days. As soon as LTC lost the $50 support, buyers started to quit the market. In consonance, the Relative Strength Index was below the half-line signifying overpowering of selling pressure.

RSI however displayed a small uptick signalling at LTC’s struggle to recover on chart. The price of Litecoin was below the 20-SMA line which meant that sellers were driving the price momentum in the market. It is in indication of bearish pressure. LTC might show signs of upward movement shortly after it declines on its chart further.

Related Reading | Bitcoin Bearish Signal: Exchange Whale Ratio Is Trending Up

Litecoin flashed buy signal on the four hour chart | Source: LTCUSD on TradingView

The four hour chart displayed mixed technical outlook for LTC. Chaikin Money Flow determines the capital inflows and outflows. CMF was way underneath the half-line pointing towards extremely low amounts of capital inflows.

Awesome Oscillator reads the price momentum and direction of the coin. AO was below the half-line displaying green signal bars. These green signal bars were a buy signal with chances of a potential shift in the price action. For LTC to follow through a reversal, broader market weakness has to decline.

Related Reading | Bears Refuse To Budge As Bitcoin Struggles To Reclaim $20,000

Featured image from UnSplash, charts from TradingView.com