Litecoin could stage a technical pullback from current levels after the cryptocurrency found strong resistance from the $63.00 level.
Litecoin technical analysis shows that the cryptocurrency could fall back towards the $50.00 level before rallying again.
Litecoin medium-term price trend
Litecoin technical analysis shows that the cryptocurrency recently failed to break above its 200-day moving average, and reversed from the $63.00 level.
The fact that the cryptocurrency failed to find the required buying demand to move price above its 200-day moving average, around the $68.00 level, implies that a strong reversal may be coming.
The broader cryptocurrency market has also started to lose momentum this week and appears ripe for a deeper technical pullback.
With these factors in mind, a pullback towards the LTC/USD pairs 50 and 20-day moving averages may be on the cards.
The 20-day moving average is located around the $52.00 level, while the 50-day is currently found around the $46.00 level.
Traders should expect a pullback towards the $50.00 area, and the aforementioned support region over the coming days if bulls fail to anchor the cryptocurrency above the $55.00 level.
Litecoin short-term price trend
Litecoin technical analysis over the short term shows that a bearish head-and-shoulders pattern has formed across the lower time frames.
The one-hour time frame shows that the bearish head-and-shoulders pattern is nearly complete, with the neckline of the pattern located around the $55.00 level.
The size of the pattern indicates that a decline towards the $45.00 level is possible over the short term, although the $50.00 level certainly offers strong support.
Traders should continue to monitor the lower time frames for a sudden decline as the bearish pattern is near completion.
If a decline does occur towards the $50.00 level it may attract dip-buyers who have recently turned bullish towards Litecoin over the medium to longer term.
Litecoin technical summary
Litecoin technical analysis is indicating that a decline back towards the $50.00 level may be on the horizon. The recent failure around the $63.00 level has created a bearish reversal pattern.
