Litecoin's LTC token saw a 3.43% decline over the past 24 hours, with prices falling from $92.33 down to $89.19 as of July 25, 2023. Here are some key takeaways from analyzing the recent price action:

Breakdown From Horizontal Support

LTC broke down through support around the $90-$92 zone which had been acting as horizontal support over the past few weeks. This breakdown opens the door for a potential move lower toward the next support around $84.

Bearish Divergence on 4-Hour RSI

The 4-hour RSI formed a bearish divergence by making lower highs while price formed higher highs. This warned of weakening momentum before the breakdown. The RSI is now approaching oversold levels below 30.

Lower Highs Establishing On Intraday Charts

On the 1-hour and 2-hour charts, LTC is putting in a series of lower highs showing intraday weakness. This indicates sellers are still in control of the short-term trend. A break above $91 is needed to reverse this bearish intraday outlook.

Prediction: Rangebound Action Between $84-$92

My prediction is LTC will see rangebound price action between support at $84 and resistance at $92 in the coming days. The oversold RSI suggests a relief rally up to $90-$91 is likely. However, previous support around $92 should act as resistance on any bounce. Rangebound action is expected short-term.

Is Now a Good Opportunity to Buy Litecoin?

With LTC pulling back 3.43% in the past day, is now a good time to buy the dip? Dollar cost averaging can reduce timing risks. Waiting for a confirmed bottoming pattern to develop could provide a lower risk entry. The key $84 support level is a potential area to scale in. RSI divergence would confirm an exhaustion bottom.

Can Litecoin Gain Positive Momentum?

Despite bouncing off lows, Litecoin is still lacking significant positive momentum. The weekly chart remains in a downtrend of lower highs and lower lows. To reverse this bearish structure, LTC needs to break out above resistance around $140.

In the meantime, the $84-$92 range is likely to dominate without a catalyst. To summarize, LTC remains generally stuck in a bearish trend lacking upside conviction. A weekly close above $140 would be needed to signal bullish trend resumption. Patience is warranted for now.

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