Litecoin price is about 8.25% from where it began in 2022. Efforts by the bulls to push the crypto past the crucial support-turn-resistance zone of $150 have been unsuccessful. The downward momentum recorded over the past two months has pushed its market capitalization from over $19 billion in November to the current $9.6 billion.
Litecoin, which is often referred to as Bitcoin Lite, was founded on Bitcoin’s protocol with the aim of facilitating affordable peer-to-peer exchanges. Notably, it is one of the widely accepted cryptocurrencies across the globe with over 2,000 merchants approving it as a means of payment.Despite the slowdown that has rocked the crypto market in recent months, the altcoin will likely record significant gains in the foreseeable future.
LTC is on a rebound for the second session in a row. Earlier in the week, it rose past the critical level of 150 before falling back below it to a one-week low of 133.26. At its current level of 138.62, the altcoin is 14.59% above the six-month low it hit in the past week.
On a four-hour chart, it is still below the 25 and 50-day exponential moving averages, which have converged at 141.38. While I expect Litecoin price to ease on its downward momentum, it will likely remain under pressure in the short term.
If the bulls are to have an opportunity to start a bullish reversal, there needs to be enough buyers to change to current resistance zone of 150 into a steady support level. In the near term, insufficient investor enthusiasm will likely have the crypto trade within a horizontal channel with 136.06 and 141.38 as the range’s lower and upper borders respectively. Additional rebound past the upper border may place the resistance level at 146.01.
Even with the bearish outlook, Litecoin price will likely hold steady above the month’s low as the bulls await a catalyst for a trend reversal. As such, a move below 130.50 will invalidate this thesis.
This post was last modified on %s = human-readable time difference 07:03