The cryptocurrency fell to its lowest level since November 2020. The pair showed some recovery potential but found strong resistance close to the 23.6% Fibonacci retracement; Litecoin is on its way to a third breakout attempt.
The Bollinger bands are wide, and volatility is expected to be high in the upcoming trading sessions; the lower band acted as a support level and slowed down the plunge; now that the pair has found resistance, we will have to wait and see if a third attempt is successful and make a trading decision.
The relative strength index is at 36%, which is just shy of the oversold status it maintained from May 9th to May 17th. This RSI will allow a potential recovery as many investors are likely to enter the market at a low price. Our parabolic SAR indicator suggests that the pair will start an uptrend in the short term; a lot will be based on whether or not the resistance breakout can be completed.
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