Litecoin remains in a downtrend, with both the moving averages trending down and the RSI in the negative territory. The pullback stalled just above the $36 levels, which shows a lack of buying at higher levels.
The bears will attempt to make a new year-to-date low, while the bulls will try to defend the current lows. If the bears succeed, the LTC/USD pair can correct to $20 levels.
However, if the bulls use the current fall to buy and form a higher low, it will indicate strength. The digital currency will show first signs of a trend change, if it sustains above the downtrend line. Until then, it remains vulnerable to a bear attack.