- Litecoin’s recent rejection of highs near $ 250 leads to an outage of up to $ 180.
- The recovery seems like a far-fetched idea, especially with the low levels of support.
- The MACD adds weight to the bearish narrative as losses linger towards $ 150.
- Holding above $ 180 could see LTC abandon the bearish narrative and resume the uptrend.
Litecoin recently abandoned the journey to all-time highs after a barrier slightly below $ 250. The correction has proven difficult to stop, with Litecoin losing various provisional support levels such as $ 220 and $ 200. Meanwhile, the altcoin is testing the support at $ 180 while it drops towards $ 150.
Litecoin engages strong reverse gears as technical levels weaken
The 4-hour chart illustrates a Massively Bearish Moving Average (MAC) convergence divergence. This technical indicator can identify which positions to sell the top and where to make an entry.
Diving below the midline means increasing selling pressure. Also, an increasing divergence between the MACD (blue) line and the signal line confirms the bearish outlook. In other words, LTC will likely continue to crumble until tremendous support is established.
4 hour LTC / USD chart
The path of least resistance is on the downside, particularly with the price trading below the 50 simple moving average (SMA) on the 4 hour chart. Support at $ 180 is essential to resume the uptrend. However, in the event of a loss, Litecoin can drop freely to $ 150.
IOMAP by IntoTheBlock highlights the lack of vital support areas under LTC. This means that if the selling pressure increases, Litecoin could dip lower. Meanwhile, the model draws our attention to the region ranging from $ 173 to $ 179. Here, nearly 35,600 addresses had previously purchased approximately 807,000 LTC.
On the upside, Litecoin faces immense resistance between $ 201.6 and $ 207. Here, around 72,900 addresses had previously purchased around 3 million SLDs. Trading above this zone will not be easy; therefore, the recovery should not come into play immediately.
Litecoin IOMAP Chart
Looking the other side of the picture
If the support at $ 180 remains intact, Litecoin will invalidate the bearish outlook and favor a recovery towards $ 180. Also, recovering the ground above the 50 SMA and $ 200 will require more buy orders, possibly even creating enough volume to break the sellers congestion in the IOMAP resistance between $ 201.6 and $ 207.