After touching what would be described as an all-time high with its recent leap of $230, Litecoin is presently trading around $210, hours after the feat. Noticeably, the bears are already in the market, and the digital asset has succumbed to their push for a place judging by its reaction.
Even though the digital asset has gradually returned to trade around $214, the digital asset had to rally up after it fell further down to the $208 price mark. According to various on-chain details, the digital asset is trying to move away from being overbought, signifying that the bears are not leaving the market anytime soon.
Litecoin risks triggering its intraday low
With the coin not showing any spirit in rising above its previous price, the digital asset might still hope that the bulls would push out the bears from the market. If this does not happen in the early instance, it could well move below the intraday trading low as decline sets in. If a decline happens and the asset moves lower than its 9 day moving average at $185, it could signal room for more decline with the digital asset primed to hit $180.
If the bears persist and the bulls do not react to that on time, it could signal a further decline to trade at $170, and another decline would see the price rest at its last support at $160. Also, traders would not need to worry about these level yet as a previous strong support level of $210, and $205 would have the bulls waiting to defend the price. If that doesn’t happen, the traders will hope that the bulls support the asset at $200 and trigger an upward movement. However, one cannot specifically point out where it will trade with the asset still in the overbought zone.
Bulls might take over the market soon
If Litecoin decides to follow the momentum and spark a bullish run, the first contact point in terms of resistance would be the $255 price level. If the bulls scale over the first resistance, they would need further momentum to break above the $265 and $275 resistance levels. Also, the volume shows that the digital asset is present atop everything, and it implies that the bulls might come into the market sooner or later.
In its trade against leading digital asset, Litecoin has been able to break the previous support it shared to trade around 4406 Satoshi from its previous level of 4324 Satoshi. However, if the asset decides to break below the 50 level of its Relative Strength Index, it could trigger a bearish run that would see it trade the 4200 Satoshi support level.
If it breaks below this level, then the only support levels remaining is the 4000 and 3800 Satoshi levels. With the digital asset presently trading at 4406 Satoshi against Bitcoin, the bulls will be charged with triggering a bullish run that would see the asset break above the 4879 price level. If the asset breaks above this level, it could touch 5000 Satoshi and move all the way to touch 5300 in the process.