Litecoin (LTC) experienced a brief scare on June 30th when its price dipped below a critical support level of $70. This decline followed a broader bearish trend that has seen the cryptocurrency steadily lose value since February.
However, bulls (investors who believe the price will rise) stepped in to buy the dip, pushing Litecoin back above the $70 mark. This support level has proven significant throughout 2024, acting as a floor for the cryptocurrency’s price during previous corrections.
Analysts are cautiously optimistic about Litecoin’s short-term future. If buyers can maintain control and keep the price above the moving average lines, a return to the positive trend is likely. This could see Litecoin climb as high as $89.
Conversely, if the bulls lose ground and the price falls below the moving averages, Litecoin could become trapped in a trading range between $67 and the moving averages. At the time of writing, Litecoin sits at $73.
Looking at technical indicators, Litecoin‘s price chart displays a series of declining highs and lows, reflecting the overall downward trend. However, there are also signs of bullish pressure. The presence of extended candlestick tails on the downside suggests that investors are actively buying at lower price points.
Resistance levels, which represent price points where the upward momentum might stall, sit at $100, $120, and $140. On the other hand, support levels—prices at which the price might find buyers –—are at $60, $40, and $20.
While the immediate future for Litecoin remains uncertain, the recent price action indicates a potential reversal. The bulls have shown their strength by defending the critical $70 support, and a return to an upward trend is possible if they can maintain control. However, continued bearish pressure could force Litecoin into a period of consolidation.