Litecoin Price Analysis: LTC/USD double-bottom reversal stalls at $44.00
|- Litecoin is holding dearly to the 50 SMA support following another rejection at the trendline resistance.
- LTC/USD could be staring into a triple-bottom pattern if the 50 SMA support is shattered and $42.00 is retested.
Litecoin refreshed the lower levels at $42 earlier this week during a widespread cryptocurrency selloff. Prior to that, the digital asset had made a shallow recovery from the same level which lost steam at $45.30. Its upside was capped by a descending trendline. The dive to $42 formed a double-bottom pattern which culminated in a reversal. This time, the recovery did not make it past $44.00. However, the same trendline resistance prevented further movement towards the psychological $50.
At the time of writing, LTC/USD is trading at $43.61. It is immediately supported by the 50 SMA ($43.48) in the 1-hour range. The trend is neither bullish nor bearish as the RSI moves sidelong at 50.00. Consolidation is likely to take over in a narrow range between $43.00 and $44.00. LTC/USD has the tendency to hold sideways trends in very narrow ranges.
The MACD is holding the ground at the midline. This follows recovery from the drop to -0.41 earlier in the week. As long as the MACD holds onto the mean line (0.0), Litecoin would continue to trade sideways. It is also important the 50 SMA support is defended at all costs as trading below it could lead to another free-fall to $42.00. Losses below $40.00 are still not out of the picture just yet.
LTC/USD 1-hour chart
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