LTC/USD traded lower yesterday after it hit resistance at 74.10, but the slide was stopped at 64.35. The crypto has been trading between those two barriers since May 13, and thus, we would consider the very short-term bias neutral.
However, zooming slightly out, we see that Litecoin remains well below the downside resistance line taken from the high of Mar. 30, and thus, we see more chances for traders to exit the latest range through its lower end.
Such a break could invite more bears into the game, who could dive towards the low of May 12, at 50.55. If they don’t stop there, then a break lower would confirm a forthcoming lower low on the daily chart and could extend the slide towards the 41.00 barrier, which acted as an important support zone between May and September 2020.
The RSI lies below its 50 line and points down, while the MACD runs below its zero and trigger lines. Both indicators detect downside speed and support the notion that this crypto will soon be breaking below the 64.35 support zone.
We will abandon the bearish case only if we see a clear break above the 97.80 barrier, which acted as a key support between Apr. 25 and May 3. Such a move will probably also confirm the break above the downside resistance line taken from the high of Mar. 30 and could initially target the peak of May 5, at around 106.75.
Another break, above 106.75, could extend the advance towards the high of Apr. 21, at 114.70, the break of which could carry more bullish implications, perhaps setting the stage for advances towards the high of Apr. 5, at around 127.15.
