Litecoin price retests $170 zone amid new sell-off pressure
Litecoin bulls are currently struggling to keep prices above the support line of a bearish chart pattern
Litecoin price plunged 31% during last week, bulls facing a brutal reality as the broader market descended into the red. The follow-up bounce saw buyers come close to retesting the $190 zone. However, as bulls appear exhausted, momentum is looking to shift towards the bears.
If this outlook holds, Litecoin’s price might revisit last week’s lows. At the time of writing, the LTC/USD pair was changing hands around $172, about 3.3% down in the past 24 hours. Overall, Litecoin’s price is 25% down over the past week.
Litecoin price outlook
LTC is trading below a robust resistance zone on the 4-hour chart, with the coin’s technical outlook indicating a potential downturn as bears seek further ground.
The overall weakness in the Bitcoin market could catalyse LTC price’s vulnerability to fresh losses, with the perspective likely to strengthen if sellers push prices below $170.
LTC/USD 4-hour chart. Source: TradingView
As can be seen on the chart, LTC/USD is below the 50 simple moving average, whose curve is dipping to suggest a bearish bias. Prices are also capped within a descending triangle pattern to add to the bearish outlook.
The RSI and MACD on the 4-hour time frame are also pointing to a potential breakdown, with the former sloping below the equilibrium point and the latter highlighting a possible bearish crossover as it weakens below the zero line.
If sellers manage to breach the demand zone around $160, LTC/USD could decline to lows of $147 in the next few days.
On the upside, the 4-hour chart shows that bulls face a robust supply zone highlighted by several resistance areas. The first barrier is likely at $178, an area marked by the 23.6% Fibonacci retracement level of the downswing from $232 to $161.
The downtrend line, the 38.2% Fib level ($188), and the 50 SMA ($192) are the next hurdles bulls are likely to encounter if there’s a swift bounce. If bulls manage to go higher, a breakout to the 50% Fib level ($196) could open up a path to the critical $200 zone.
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