- Litecoin price dropped 9% over the past 24 hours as crypto markets tumbled.
- Although the bulls are trying to find support, a retest of the $200 psychological level seems likely.
- In some cases, LTC might form a triple bottom at $160.86 before triggering an upswing to $225.
Litecoin price experienced a sell-off as it set up a swing high on August 23. While this downswing sliced through a support level, it is showing signs of a rebound from its current position.
Litecoin price to continue its uptrend
Litecoin price created a higher high on August 23 at $192 but failed to sustain it. This move resulted in a downswing, which seems to be forming a lower low above the 50% Fibonacci retracement level at $171.62.
While an upswing could originate here, investors need to be cautious of a downswing that forms a triple bottom at $160.86.
Either of the two scenarios could take place without hampering the bullish thesis.
Assuming LTC sees a bullish reaction, the upswing needs to slice through the $180.91 resistance level to have a shot at setting up a higher high at $200 or higher. The rally from $171.16 to $200 constitutes roughly a 16% upswing.
In some cases, the bullish momentum could propel Litecoin price to tag $225.05, a 30% advance from $171.16.
LTC/USDT 12-hour chart
While things seem to be looking up for Litecoin price, market participants need to be wary of a downswing that breaches the trading range’s mid-point at $171.16. This move could open up the path to establishing a triple bottom at $160.86.
If such a development were to occur, it would add a tailwind to the bullish hypothesis. However, a potential spike in selling pressure that produces a decisive close below $160.86 will invalidate the optimistic narrative detailed above and could also trigger a crash to $149.20.