Figure 1: Testing Support
Litecoin has been the steadiest and most predictable cryptocurrency during 2017. Have a look at Figure 2 below.
Figure 2: Litecoin's Rise
Since April, there has been a clear bullish support line for LTC, but with the recent news from China (banning ICOs and closing exchanges), for the first time since April, when this uptrend began, we have closed under that support line. People are now talking about a bearish market for LTC and other cryptocurrencies.
I need further confirmation that this is a bear market. As can be seen by Figure 1, it often happens in trading that a resistance line (resistance is a line that the market price will not close above) becomes a support line. The current price is testing the old resistance. If we drop below this it isn't a sign we've entered a bear market. Let's look at the Fibs for that.
Figure 3: Fibonacci Retracement Apr-Sep
We can see here we are at the 50% mark when looking at the breakout from April to the high in September. It is entirely normal to see retracements like this. Prices could drop to the 38.2%, which is about $37. So that is what to watch for. If we hold the current line of support and see prices on the rise, look to see if we can break $57.
Fundamentally Litecoin still makes sense despite China banning exchanges. If you still believe in the technology, can see how LTC has some advantages over BTC and has potential to be a mainstay in the cryptocurrency world, then there is no need to fear. I've maintained for a while now, that any price under $50 is great and anything under $40 for LTC is a steal. I'm still bullish, I don't see short-term sharp price rises though.
If you are thinking of investing, please do ample research and never invest more than you are willing to lose.