Litecoin has been in a downtrend since May 10th and has since lost 58.24%. It has reached it's lowest point in the past 3 months. The quicker they go up, the quicker they go down. We drew a Fibonacci retracement to try to determine the support levels for the downtrend. In yesterday's session the pair was able to break the first support level at $207.08, however, this breakout was not consolidated and the price continued to fall in today's session. When will the drop stop?
The Bollinger bands are wide and continuing to open, indicating high volatility for the upcoming sessions. The price trades below the lower band suggesting that the price is relatively low, meanwhile, the relative strength index is at 33% and very close to entering an oversold status.
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If this does happen, we would likely see a price rebound and an attempt to break the support level at the 23.6% Fibonacci retracement. We have not seen Litecoin enter an oversold status since March 2020, making it a good indicator that markets might start reacting soon.
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