Litecoin continues its downtrend and breaks the support level at $125.820. The pair has closed with a loss 11 out of the last 14 trading sessions,
The Bollinger bands are expanding, and this will bring higher volatility to the markets. The pair trades below the lower band, suggesting that the price is relatively low, which will likely stop the bleeding in combination with other indicators.
The relative strength index is at 32% and about to enter an oversold status. We have not seen the RSI below 30% since March 2020, which is a good indication that investors might buy the dip. There is a chance of recovery for this pair in the short term, given the past performance of the RSI.
The following support level is at $115.660, and there is a chance the price could test the support in the next trading sessions; this will be our reference to determine which direction we place our trade. If the pair is able to find a support and the RSI is at 30%, we could expect a pullback and the opportunity to place a long trade. On the other hand, if the price breaks the support level, we would expect the price to continue falling for a little bit more before it starts a recovery.
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