Litecoin stood at 147.54 at the time of writing and it seemed vulnerable to a deeper drop. It has ignored strong downside obstacles, so more declines are in cards. The pressure is high despite temporary rebounds. We cannot talk about a potential strong growth as long as the price action fails to print a bullish pattern.
Bitcoin's crash after China declared all crypto transactions illegal forced the altcoins to drop as well. BTC/USD dropped more than 9% from today's high of 45,159. On the other hand, LTC/USD plunged by around 14.90% from today's high of 166.65 to today's low of 141.82.
LTC/USD deep in the sellers' territory
LTC/USD resumed its sell-off after the fake news regarding Walmart. That huge spike up signaled a potential downside movement. It has found temporary support on the 149.26 static support (resistance has turned into support) but it has failed to stay above it or above the first warning line (WL1) of the Ascending Pitchfork.
It has dropped as much as 141.82 and now it has turned back to retest the broken downside obstacles. A new lower low, as well as a drop and closure below 141.82, may really activate further downside movement.
Litecoin forecast
LTC/USD could extend its downwards movement if it stays below 149.26 and if it makes a new lower low to drop below 141.82. This scenario could signal potential declines towards 130.00 and 120.00 levels.
The material has been provided by InstaForex Company - www.instaforex.com