LTC/USD dropped significantly after reaching today's high at 179.79. It's located at 163.24 level far below the immediate upside obstacles. The price of Litecoin dropped as the price of Bitcoin plunged as well.
As you already know, we have a correlation between the price of Bitcoin and the altcoins. Still, the current drop could be only a temporary one. LTC/USD dropped by 10.55% from today's high of 179.79 to today's low of 160.83.
LTC/USD Correction!
Unfortunately, LTC/USD failed to stay above the R2 (169.92) and most important above the ascending pitchfork's median line (ML). A drop below 158.86, a new lower low, may signal a potential drop towards 149.26.
Its failure to approach and reach 181.26 static resistance signaled overbought conditions and indicated a potential retreat. Technically, a correction was expected after the most recent swing higher.
Outlook
Staying above the R1 (159.88) and making a consolidation here could really signal that Litecoin may resume its growth. Also, a larger decline towards the 149.26 static support could help us to catch a new leg higher.
The material has been provided by InstaForex Company - www.instaforex.com