Litecoin price analysis: buy dips below $50
14:32, 14 August 2020
Litecoin appears increasingly bearish in the near term, as the cryptocurrency struggles to regain the $60 technical level.
Litecoin price analysis shows that the cryptocurrency could be preparing to drop towards the $47 support area before the recent up-move resumes.
Litecoin medium-term price trend
Litecoin could soon start to move below the $50 level, as a wave of technical selling pressure continues to drag the popular cryptocurrency lower.
Litecoin technical analysis shows that the LTC/USD pair will turn technically bearish if the price moves under the $50 level.
The daily time frame shows that the July 27 swing-low, around the $47 level, and the July 25 low, around the $44.00 level, are the key support zones below the $50 level to watch.
Given the ongoing breakout in the broader cryptocurrency market, the LTC/USD pair is expected to meet strong dip-buying interest from the mentioned support zones.
Long-term analysis highlights the $80 level as a potential upside target while the monthly candle continues to close above the $50 level.
Traders should note that a weekly price close under the $44 level will negate the bullish medium-term outlook surrounding the LTC/USD pair.
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Litecoin short-term price trend
Litecoin technical analysis shows that the cryptocurrency has a bearish short-term bias while the price trades below the $54 level.
The lower time frames currently show that a large head-and-shoulders pattern has been activated following the recent move under the $54 level.
According to the size of the bearish pattern, the LTC/USD pair could fall towards the $44 level over the short term.
It is also noteworthy that the RSI indicator is showing negative price divergence extending down towards the $48 level.
Litecoin technical summary
Litecoin technical analysis shows that bears are gaining control of the cryptocurrency and may force a decline towards the $48 to $44 area.