Litecoin (LTC): Rejected at $40, this downtrend could last longer
|- Litecoin corrects lower 1.8% on the day as the crypto market stays in the red.
- A bullish trend could be brewing in the background.
The market is in the red on Tuesday. However, there was a marginal recovery in the market yesterday. Litecoin price, for example, bounced from the support at the 38.2% Fibonacci retracement level taken between the highs of $41.59 and the lows of $22.62. The bullish correction managed to pull above the 50% Fib level but fizzled out short-of $34.00.
Litecoin started this year’s trading with a strong upside momentum. The bulls maintained its position above the trendline support while trading higher highs and higher lows. In fact, there was a break above the resistance at $40. Unfortunately, they could not sustain the momentum as the trend culminated in a lower correction forming lows towards $30.00.
Meanwhile, Litecoin is trading at $31.8 and is below the 1-hour Simple Moving Averages (SMA). The price is dancing with the 50 SMA while the immediate upside is limited by the 100-day SMA. LTC buyers must push the crypto above $34.00 in order for them to embark on a recovery journey towards the psychological $40.00.
On the flipside, if the current bearish trend progresses, LTC/USD is expected to find refuge at $30.00 (38.2% Fib level). Below this level, the buyers will take solace at recent lows around $22.5.
Taking a broader look at the chart, a bullish trend could be brewing in the background since the Moving Average Convergence Divergence (MACD) is trending to the upside from the dip at -1.57. Likewise, the Relative Strength Index (RSI) on the same chart, defended its position above the oversold region. Besides, it has recovered to the current position at 50.00.
LTC/USD 1-hour chart
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