Key support
Litecoin has formed a massive support near $50, a key physiological level. It has been rejected three consecutive times, with the most recent bounce occurred on the 31st of October. Then price has jumped up by nearly 20%, reaching the $57.3 high, where it rejected the 200 Moving Average.
Correction
Currently LTC/USD corrected down, to the recently established low on the $53.15. There LTC rejected the 161.8% Fibonacci retracement level applied to the corrective wave down after the breakout of the downtrend trendline . The $53.1 Fib support level is being rejected, which shows the dominance of the uptrend.
Potential
As the support holds, price will either consolidate or move to the new higher high. While there are several minor resistance levels, we’ll concentrate on the stronger levels. The key resistance is confirmed by the 61.8% Fibonacci retracement at $60 physiological level. This price can be very attractive for both, buyers and sellers. Because those who had bough LTC earlier might consider fixing profit, and those who plan to sell LTC could be waiting for that price with limit orders. The next resistance is at $65, that is 88.6% Fibs, while the final and key resistance is at the previous high - $67.
Consolidation
Since 14th of august, Lite coin has been consolidating between $50 support and $65 resistance levels. This is a very wide range which can be extended further. If this scenario will be true, the $65 level is yet to be reached. But at the same time, if LTC breaks below the $53.1 level, price can drop back down to the $50 area. Such drop will not confirm the downtrend, but will show a more bearish consolidation scenario.
Summary
Price is producing higher highs and higher lows, which is a sign of an uptrend. But the Moving Average was rejected which is a bearish sign. It seems that consolidation in ongoing on both, short and long term. Unless $53.1 support will be broken, buyers are likely to dominate in coming days. Considering our previous idea on LTC/BTC, it shows that level of resistance became the support, where all attention might be concentrated.
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