The daily chart of Litecoin shows that it has approached the EMA of 200. The first attempt to break thought this level was on August 18. This is where it started a technical correction. Now it is likely that Litecoin will try to break through this level for the second time and thus be able to reach the psychological level of 200.00.
Litecoin fell below the 200 EMA on May 19 and since then it has been consolidating between an upper range of 188 to a low of the range at 102. Now it is approaching the top of this level. The breakout of the 200 EMA could give it more bullish strength to hit the target at 200.00 and thus rise to the 61.8% Fibonacci level at 291.00.
As Litecoin remains below the 200 EMA located at 192.62, we believe that in the medium term it could continue with a bearish bias and fall towards the low of 102.00.
The last daily candlesticks show an intact uptrend projected with a trend channel. A breakout and consolidation below this channel could be the start of a new bearish wave up to the 150.00 level, 4/8 murray line and a pivot point.
The key is to wait until Litecoin pulls back to the level of 192.63 (EMA 200), or wait for a sharp breakout of the uptrend channel with the targets at 160.00 and 150.00 in the short term.
Support and Resistance Levels for August 20 - 23, 2021
Resistance (3) 197.75
Resistance (2) 192.70
Resistance (1) 183.81
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Support (1) 178.49
Support (2) 175.31
Support (3) 169.60
