The daily chart of Litecoin shows that it is under downward pressure. If you look at the chart, the last daily candles around the EMA of 200 have not been able to break this level. After having formed a fractal due to the consolidation, now it is trading below the SMA of 21 located at 175.00.
The EMA of 200 in daily charts gives us the bearish outlook that the market could adopt in the medium term because the price is trading lower. Litecoin could fall back to the level of 150.00 in the short term.
Cryptocurrency market sentiment is deteriorating after BTC has failed to consolidate above the psychological level of 50,000. Meanwhile, investors are taking profits, waiting for a decline to attractive levels to buy again.
Therefore, a catalyst such as negative news could push the price down since this market is very sensitive to any negative news that could trigger a rapid fall in cryptocurrencies, and therefore could affect Litecoin.
The key from a technical point of view is to sell below 175.00 because the SMA of 21 is located there on daily charts. The targets are seen at 162.50 and 150.00. The eagle indicator that measures the volume and strength of the market is generating a bearish signal.
Support and Resistance Levels for August 27 - 30, 2021
Resistance (3) 187.37
Resistance (2) 178.25
Resistance (1) 176.20
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Support (1) 162.93
Support (2) 154.27
Support (3) 147.43
The material has been provided by InstaForex Company - www.instaforex.com