[Litecoin bullish exhaustion warns of 7.75% correction ahead]
Although Bitcoin prices have recovered recently, Litecoin has struggled to sustain its gains and is facing the threat of a decline. Litecoin’s price could drop 7.75% to $58 in the absence of support from trading activity.
On the 4-hour chart, although Litecoin staged a V-shaped reversal following last week’s bearish crash, rising 26.87% in nine days, the rebound lacked momentum, forming a rising wedge pattern and emerging as a bearish flag.
Currently, Litecoin is trading at $63.44, with two consecutive bearish candles showing price rejection from the resistance trendline. The Stochastic RSI line has a bearish crossover within overbought territory, reflecting bullish fatigue.
While the rally surpassed the 20, 50, and 100 EMAs, the impending decline could see the price fall below the 100 EMA. Litecoin found resistance at the 50% retracement level at $64.46, based on Fibonacci retracement levels, and supply pressure increased.
Litecoin could fall significantly if the price breaks below the support trend line, with support levels at $61.78 (38.20% Fibonacci level), $58.46 (23.60% Fibonacci level), and finally the base level at $53.11.
