The lite version of Bitcoin, Litecoin, has been consolidating below $70 ever since the price experienced a huge rejection from $80. Moreover, after multiple bearish attempts to surpass $70, the bulls appear to have drained, resulting in a fresh bearish reversal below $64. Now that the buying pressure has been squeezed heavily by the bearish action, the fear of plunging below $60 also escalates.
Just before the halving in August, the Litecoin price received a massive flight and surged hard to hit its yearly highs at $115. However, the price began to drop heavily while the halving failed to induce the required momentum. As a result, the price maintained a steep bearish trend and is currently settling within pre-determined resistance and support levels.
Amid the expectations of a bullish breakout, the fear of breaking down the lower support haunts the rally. If this trade plays out well, then the LTC price could end up plunging below $60.
The Litecoin price has been trading within a parallel channel for over a couple of months. With the fresh bearish action, the probability of the token visiting the lower support emerges. The bearish narrative is supported by the DMI, which suggests the prices are on the verge of falling hard. The ADX is plunging, suggesting a drop in the strength of the rally; besides, the -DI line goes over the +DI line, signalling a fall in prices.
Alongside, the RSI is also plunging, which substantiates the bearish claim. In the coming days, the LTC price is expected to test the lower support, piercing through the lower support. Therefore, bearish clouds hover over the Litecoin price, suggesting the token to enter the liquidity zone in the coming days.
