Litecoin breaks below the short-term channel, downside pressure is growing
|- LTC/USD has lost over 8% of its value in recent 24 hours.
- At the time of writing, the coin is consolidating losses.
Litecoin, now the fifth-largest digital asset with the current market value of $4.2 billion, has lost nearly 8% of its value in recent 24 hours. Litecoin’s collapse dragged the whole market in the red territory as bearish sentiments increased across the board. At the time of writing, LTTC/USD is changing hands at $66.73, mostly unchanged since the beginning of the day.
The fundamental reasons for Litecoin’s underperformance remain unknown, however, from the technical perspective, a breakthrough below the lower boundary of the recent upside channel.
Litecoin’s technical picture
Looking technically, LTC/USD has recovered from Monday’s low of $64.04, though it is still well below critical $70.00. A sustainable move below this handle darkened the technical picture and increased the downside pressure on the coin. The local support is created by the lower line of daily Bollinger Band at $64.30 followed by the recent low of $64.04 strengthened by the lower line of one-hour Bollinger Band. Once it is out of the way, the sell-off is likely to be extended with the next focus on $60.00.
On the upside, we will need to see a sustainable move above the middle line of one-hour Bollinger Band at $69.00 followed by psychological $70.00. We will need to see a sustainable move above this handle for the upside to gain traction with the next focus on $71.00 with SMA50 (Simple Moving Average) one-hour located just above this level. The next resistance is created by SMA50 (Simple Moving Average) daily at $75.00.
LTC/USD, one-hour chart
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