On August 17th, Litecoin (LTC) price broke the crucial support zone of $70 with a 13% intraday drop. The demand belt, present close to $70, was successful in bouncing the prices higher twice in 2023.
Moreover, the downtrend cracks the trend line supporting the pullback phase, reflecting the solid supply pressure.
With a negative 11% year-to-date return in 2023, LTC price loses all the 2023 gains and trades at $62.14. Making a short V-shaped reversal, the LTC price retests the broken trendline for the second time, bringing a 5.63% recovery.
Currently, the Litecoin price clings close to the crucial price action zone at $62. With the overall market recovery, the altcoin price can surface above the broken trendline, which may boost the price higher to the 50-day EMA at $71.
However, post-death cross (bearish crossover of 50 and 200-day EMA), the increased selling pressure warns of a sharp profit booking to put out the recovery.
Coming to the technical indicators, the MACD and RSI are presenting a recovery in motion. The RSI line resurfaces from the oversold zone to highlight a bullish divergence. Moreover, the MACD indicator takes a positive alignment with bullish histograms on the rise.
Will LTC Price Bounce To $70?
Despite the buyers making a comeback to challenge the $62 belt, the overall trend remains bearish. However, with the market leaders finding fresh relief, the altcoins are set to enter a recovery phase.
Therefore, with an impressive recovery, the LTC price can break above the trendline to reach $70.
On the flip side, a downtrend continuation will breach the $60 zone, to test bullish dominance at $50 demand belt.