As the bad news out of China and elsewhere continues to emerge, Litecoin, along with other crypto currencies are taking a battering. However, there is a major support zone not too far away… where Litecoin may attain some respite.
Let us take a closer look at the LTC/USD chart on the Daily timeframe (click to expand):
The red horizontal line is the one that may indeed provide some support, for two main reasons.
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1) It’s already been tested before, on the 18th of December, 2013, circled in blue.
2) It’s a psychological whole number, at 9.0.
We also have the Stochastics in oversold territory, although when the bears are this strong, it often doesn’t mean much.
I doubt it will be long before price hits the support at 9.0, the question is how long will this support last, since if price manages to break 9.0, then I fear we could see falls on Litecoin, the likes of which we haven’t seen since the start of the year, barring some major bullish piece of news for crypto currencies.