- Litecoin price previously broke below a rising trend line support, indicating that a reversal from the recent climb is underway and that further losses are likely.
- Price showed follow-through with its bearish move, although a retracement to the broken support zone might still be possible later on.
Litecoin price is still being dragged lower by sellers, as the selloff hasn’t looked back since its breakdown from the rising trend line on the 4-hour time frame.
Technical signals show exhaustion
The selloff might be losing steam, as technical indicators like stochastic and RSI are nearing overdone levels. Stochastic is actually in the oversold region already but hasn’t turned higher, which suggests that there’s still a bit of bearish pressure in play. RSI is on the move down but is also around the oversold area.
For now, the 100 SMA is still moving above the 200 SMA, which suggests the potential for an uptrend. However, the short-term MA looks ready to make a downward crossover to confirm that more losses are in the cards.
If buyers regain ground, litecoin price could retreat to the trend line around 0.0125BTC, which is also near the dynamic resistance at the moving averages. A higher correction could last until the previous resistance at 0.0130BTC.
Continued selling from the current levels could take price down to the next potential support at 0.0115BTC.
Intraday support level – 0.0120BTC
Intraday resistance level – 0.0125BTC
Charts from TradingView