The cryptocurrency markets have experienced a full day of extreme volatility after Bitcoin broke above $9,000 to crash back toward $8,000 a few hours later. The Bitcoin price drop has caused the rest of the cryptocurrency market to fall substantially also. Over the past 24 hours, Litecoin has dropped by a total of over 6% to bring its cryptocurrency price down to around $110, at the time of writing.
Source: CoinMarketCap
The recent price drop for Litecoin has traders wondering if Litecoin will drop beneath $100 in the following days. With such a parabolic price increase, totaling over 124% over the past 90 trading days, it will be no suprise that some traders would like to take some of their earned profits off of the table.
However, there is some very strong support on the way down toward $100, which leads us to believe that Litecoin may be able to hold above $100 in the following weeks.
Litecoin is now presently ranked in the 6th place amongst the top cryptocurrency projects by market cap value, as it currently holds a $6.8 billion market cap.
Let us continue to take a look at the LTC/USD market and highlight some potential areas of support and resistance moving forward.
Litecoin Price Analysis
LTC/USD – MEDIUM TERM – DAILY CHART
What Has Been Going On?
Analyzing the daily LTC/USD chart above, we can see that Litecoin managed to rise up into resistance at the bearish .618 Fibonacci Retracement level (drawn in red), priced at $119.43, toward the end of May 2019. This bearish Fibonacci Retracement level is measured from May 2018 high to the December 2018 low.
Litecoin stalled after reaching this level of resistance and was unable to overcome it. With the recent price drop in Bitcoin yesterday, we can see that Litecoin also fell sharply into the support around the $109 level.
What Is the Current Trend?
Until Litecoin penetrated back beneath the $100 level, the market can be still be considered bullish. If Litecoin does fall beneath $100 it would be considered neutral. A drop beneath the $85 level could turn the short-term market trend as bearish for Litecoin.
Will We Drop Beneath $100?
If the selling continues to cause Litecoin to drop further beneath $110, we can expect immediate support toward the downside to be located at the short-term .382 Fibonacci Retracement level (drawn in blue), priced at $101.96. Immediately beneath this lies further support at the $100.94 level, provided by the previous long-term bearish .5 FIbonacci Retracement level (drawn in red). These two levels of strong support, combined with the $100 level itself, should provide enough support to keep the market above the $100 level.
If Litecoin does drop beneath $100, further support below can then be found at $97.17, $95, and $90.
What If the Bulls Regain Control?
Alternatively, if the buyers regroup and start to push the market higher, we can expect immediate resistance above the market to be located at the $119.43 resistance level. Above this, higher resistance can then be found at the short-term 1.414 and 1.618 Fibonacci Extension levels (drawn in blue), priced at $122.38 and $130.07, respectively.
Conclusion
The recent cryptocurrency volatility has started to shake the confidence out of the recently established bull run. However, for Litecoin holders, the $100 level should remain intact due to the strong support at this level.
