Litecoin [LTC], has not had a good few weeks. The digital silver, the fifth largest coin in the market by market capitalization, has been reeling since its halving at the beginning of the month. At press time, the cryptocurrency was trading at $74.14, down by over $25 since the beginning of the month and by $70 since the close of June.
This slump is a severe correction from the bullish start to the year for the digital asset. Till LTC peaked two months ago, trading at over $144, it saw an over 370 percent increase in its price from its YTD mark. Even the current price of $74 is a 142 percent incline in its price, relative to January 2019. However, the bulls have eased off considerably over the past few months.
Over a week ago, Litecoin saw a massive drop in price, a drop that shaved off just under 7 percent in less than 4 hours. The drop took LTC down to $75 and since then, it has been trading within the channel of $70-$78. This channel has resulted in a resistance of $78.64 being formed, which the price does not look to threaten at the moment. If LTC does muster up the bulls to break resistance, the next key resistance level lies at $82.81, formed as a result of the support-turned-resistance flip during the August 14 fallout.
Looking below, the cryptocurrency will find support first, at $71.97. Secondly, if this support level does break, the next key support test will be at $70.38, which the coin tested on August 15 and August 21, respectively.
Litecoin, post the $70 test on August 21, began forming an ascending channel. Higher highs were seen between August 21 – August 23, with the price pushing up from $72 to $75.