Looking at Litecoin, it seems like it is about to make a bearish reversal, after being rejected by the 200 SMA (purple) twice on the daily chart. But, if you have followed the price action in the last couple of weeks, the danger in Litecoin is to the upside.

First, the main trend is still bullish, despite the crash in May. Litecoin turned bullish after being really weak in the previous few months and now it is only the 200 SMA (purple) that is keeping LITECOIN from resuming the larger bullish trend. This moving average has been acting as resistance during August, but once it is gone, the bullish trend will be on.

At the bottom, we have the 20 SMA (gray) which is pushing the price higher in Litecoin. This moving average was acting as resistance during the bearish period as we covered on our 2021 Litecoin forecast, pushing the highs lower after every retrace higher, while now it is acting as support, pushing the lows higher after every retreat. Right now the price is at the 20 SMA after being rejected by the 200 SMA earlier this week.

Litecoin Live Chart

Sellers pierced this moving average earlier today, but seem unable to push the price down for Litecoin. If this moving average was to be broken, the other two MAs lower would offer solid support at around $145-155. But, the price action is pointing up, as we mentioned before. Sellers have tried to push down but the lows in LTC/USD have been around the $170 level for the last three days.

So, the lows are not getting lower for Litecoi, despite the retreat in the crypto market this week, while the trading range is getting narrow. So, the price action is pointing up and we will probably see a break of the 200 SMA at some point in the next two weeks. After all, if something can’t go down will eventually go up. We are long on Litecoin already and those who haven’t done so yet, might find this a good opportunity to go long too.