Bulls have faltered in their upward march and given to the bears an opportunity to gain control. As a result, technically important support levels have been breached which could lead to more losses in the value of Litecoin.
In my previous analysis, From Resistance to Support!, I did mention that all the long positions must be built with strict stop-losses. Since the supports have been breached, a lot of long positions may have been squared.
Litecoin is down 1.66% to $1.771 since yesterday.
Technical analysis of the 240-minute LTC/USD price chart reveals that market participants should look to at least exit the counter if not go short on it.
Litecoin Chart Structure – After cracking the upward sloping support line, Litecoin slipped to $1.740, near the previous low of $1.719, and then rose again to the present level. However, according to technical analysis, the breached support will now act as a hurdle. The resistance is calculated to be $1.790.
Fibonacci Retracements – This tumble also saw Litecoin violate the 38.2% Fibonacci retracement level of $1.792 and head down to the support provided by the 50% retracement