Litecoin (LTCUSD) extended its decline in recent intraday trading as the cryptocurrency searches for a higher low that could provide a solid base for rebuilding the positive momentum needed to resume its recovery. The broader technical backdrop remains favorable, with the price continuing to trade above its 50-period Simple Moving Average (SMA), which is acting as dynamic support and strengthening the prospects for a near-term recovery. The primary uptrend also remains in control, with price action continuing to follow a minor ascending trendline that supports the prevailing bullish bias. Meanwhile, momentum indicators are beginning to form a bullish divergence after reaching extremely oversold levels relative to the price action, with fresh bullish signals also starting to emerge.
Therefore, our outlook remains bullish for the cryptocurrency’s upcoming intraday trading sessions, particularly if the current support level at $53.00 remains intact. Under this scenario, the price is expected to target its first resistance level at $56.00.
Today’s price forecast: Bullish.