Litecoin price analysis: Critical support tested, breakout impending

  • Litecoin price waterfall drop threatened losses below $40.
  • Reversal above towards $50 depends $41-$40 critical support protection.

The $2.5 billion digital asset has is feeling the devastating effects of the crypto carnage that occurred on Wednesday. The data on CoinMarketCap shows that Litecoin has not been able to bounced from the trip it took downstream. There is a 12.47% 24-hour drop while the daily drop on Thursday is 2.72%.

The slide sent Litecoin price below $45 where it continued to test the levels towards $40. The bulls managed to regain balance slightly above $41. A recovery from this lows has remained range-bound below the base support at $45. LTC/USD is pivotal around $43 while embracing the support at $43.00.

A break above the descending trendline support is bound to pave the way for gains above $43. Sustained bullish growth depends on whether the buyers can sustain the move above $45. The gap between the 50 SMA and the 100 SMA on the 15-minutes chart continues to widen. Which means that sellers are hitting high levels. The sideways trading trend will progress in the near future as observed from the ranging RSI and the MACD, currently holding on to the mean (0.0).

The asset is not out of the danger of sliding below $40 but if the bulls can draw the line in the sand at $41, then LTC will have time to forge a correction on the road to $50.

LTC/USD 15’ chart

 

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