- The next major resistance is at $120-125- The litecoin is still under selling pressure at a critical level of resistance that has caused numerous rejections in the past.
- Weakness Bearish Crossovers Confirm Weakness: The lower crossing of short-term moving averages indicates negative persistent trend and may continue to lower to $100 or below.
- Downside Risks Accentuate: With the breach of the $115 support, Litecoin may hasten its fall to the next levels of 85 or even 50 that will reinforce a long-term bearish trend.
Litecoin was also not strong in the recent trading session, in which the price pressure was mounting at the major levels of resistance. The cryptocurrency was trading at approximately $115, and this signifies that it has not been gaining momentum as it could not sustain gains beyond the $118 mark. Market indicators stated that a bearish formation is on the verge of further losses to lower levels of support in the near future.
Rejection and Resistance Zone.
Litecoin faced stiff resistance at a level of between $120 and 125 which is a historical pullback triggering level. Each of those directions towards this range was a loss of the upward movement, which strengthened its position as a point of rejection. The present arrangement indicates the possibility of fresh selling pressure in case failure occurs to close above this area.
There is also hesitation in the behavior of prices, with the increase in volumes going along with down turns. The recurrence of inabilities to keep the strength over this point demonstrates the existence of an ongoing supply blockade. Thus, Litecoin has a technical roadblock that still restricts the potential increases in the short term.
In case of rejection, Litecoin may revert to the areas of $100, which bore short-term respite in the previous consolidations. A long term break below this level can move a decline faster to $85 and finally to 50. Such a downturn would validate an expanded bearish trend that would be in line with the multi-month resistance lines.
Short-Term Momentum and Markets Structure.
Litecoin exhibited short-term downward movement on the 15-minute chart following short-term recovery movements. The price dropped to an approximate of $118 to 115.35 indicating that selling was again witnessed in low-volume hours. Moving averages also reversed down and indicated a strong bearish crossover trend.
Source: TradingView
The 7-period and 14-period averages fell below the 30-period average, which is a short-term weakness ascertained. The alignment is usually an indicator of further downside risk unless the buyers take back in the near future. This means that the short-term recovery could be confined to say the least unless there was a decisive change in the tone of the market.
This bearish action was backed by the volume data, which displays greater involvement during lows and less involvement during uphikes. This trend showed a more confident sellers, which implies that they trust in the stabilization of prices in the nearest future less. In case the $115 floor does not succeed, more losses towards 113 or 112 may be realized soon.
Outlook
Litecoin is exposed to apparent selling pressure over various periods of time. The bearish technical signals are convergent thus indicating that the decreasing trend can continue in the short run. Any recovery more than $118 would have to be checked by sustainable buying power before changing the present situation.
Loss may happen again as failure to recover higher grounds may subject Litecoin to further losses, as was the case in long-term resistance around 125. This is not an immediate turnaround situation because the present condition encourages consolidation or decadence. Thus, the future of Litecoin is still bearish unless the market mood shifts radically.
