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Can the price of Litecoin once more cross $100

Following a rejection from long-term horizontal resistance, the price of Litecoin (LTC) declined from a diagonal support level.

The decline was rapid, and the price of LTC is currently having trouble finding support. The price may find support at the nearest Fib level as the downward trend continues.

Price of Litecoin Displays Bearish Signs at Range High

Since June 2022, the Litecoin price has increased. The increase resulted in a yearly high of $105.70 in February. The price was unable to exit the $100 horizontal resistance area, though. Instead, it twice rejected it (red symbols). For a number of reasons, the action is viewed as being bearish.

First, the double top was produced by the rejects. A bearish pattern known as the double top occurs when the price is twice rejected from the same area before falling rapidly.  Weekly LTC/USDT Chart. Citation: Trading View

A bearish engulfing candlestick was also produced by the last rejection. This particular bearish candlestick completely cancels out the prior period’s rise. It is supported by a closing that was lower than the preceding period’s opening, as happened with Litecoin.

LTC may find assistance at a long-term ascending support line at $74 if the decline persists. The next resistance level, at an average price of $130, might be reached if the price develops traction and breaks out.

Where Will the Price Find Support for LTC?

The daily time frame technical analysis predicts a negative trend for the price of LTC, supporting the continuation of this trend.

The price breakdown from a recent ascending support line is the primary cause of this. The line has been broken since March, which indicates that a corrective movement has started.

Next, the daily Relative Strength Index (RSI) has decelerated and is now below 50 (red icon). Traders use the RSI as a momentum indicator to assess market conditions, evaluate if a market is overbought or oversold, and decide whether to buy or sell an item.

Bulls still have the upper hand while the RSI reading is over 50 and the trend is up, but the situation is reversed if the reading is below 50. As a result, the negative RSI reading for Litecoin encourages the downtrend to continue.

If the decline persists, the 0.618-0.786 Fib retracement support levels, which are located between $73 and $80, would provide the nearest support.

According to the principle of Fibonacci retracement levels, the price will first partially retrace or return to a previous price level after making a significant advance in one direction before continuing in that direction. To estimate the height of prospective rising movements in the future, utilise this principle.

It will be more likely to serve as the bottom because the $73 Fib support line also happens to be the long-term rising support line.  Daily LTC/USDT Chart. Citation.

A weekly closing above $100 will signal that the trend is bullish despite the pessimistic Litecoin prediction. The most likely outcome in that situation will be a jump to $130.

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