As of this writing, Litecoin is down over 8%. It has broken a key level of support (red line) around $71.50. In addition, there seems to be a head and shoulders pattern that has been forming since April of this year. Could this mean further downside? Possibly, but several factors need to take place.
The longer term support level (red dotted line) of around $62 is where Litecoin experienced the start of it’s big move north. this would be a crucial area for it to break under and would signify more downside pressure is coming. If the price can maintain this level then traders may consider a new lower range will form in the $62 – $72 range. This, however, may only mark a pause before another decline.
If Litecoin can break back above the $72 area, then it is possible this was a simple overthrow dip and a bull run may not be out of the question. Only time will tell. A break above $73 (green line) with volume would do the bulls well.
For now, the bears are in control and bulls will have to wait and see to decide their entries and exits.
Edit: Another thing of note is that RSI levels are reaching oversold territory. The last time this reached oversold levels there was a $30 bounce over 2 days.