The bulls could not keep Litecoin above the 20-day EMA and the critical support at $29.349 on Dec. 27. However, the breakdown proved to be temporary because the price has climbed back above the 20-day EMA once again. This shows buying on dips, which is a bullish sign.
The 20-day EMA is flat and the RSI is close to 50. This points to a consolidation in the short-term. A rally above $36.428 will complete a head and shoulders pattern that can result in a rally to $49.756. We shall turn positive on a close above $36.428.
However, if the price reverses direction from the 50-day SMA or $36.428 and plunges below $27.701, a retest of the low is likely. The downtrend will resume if the LTC/USD pair plummets below $23.10.