Litecoin price analysis: LTC/USD extends the downside correction
|- LTC/USD broke below the critical support $130.00 amid intense bearish pressure.
- The recovery is capped by a confluence of technical indicators at $136.70 area.
Litecoin's recovery stalled on approach to a strong resistance has recovered from the recent lows.
The initial support is created by 135.00 handle.
Litecoin, now the 5th largest asset with the current market capitalization of $8.1 billion has lost over 4% of its value in recent 24 hours to trade at $129.23 by the time of writing. The coin topped at $146.60 on June 22 and has been moving down ever since amid technical correction in sync with the rest of the market.
Looking technically, Litecoin's move below $135.00 (psychological level strengthened by SMA100 (Simple Moving Average) on 4-hour timeframe) increased the selling pressure and pushed the price below $130.00. This development has worsened the immediate technical picture. The next support awaits LTC at $125.00 (intraday low) and $123.20 (SMA200 4-hour). A sustainable move below this level will open up the way towards the next bearish aim of $120.00 and negate the recent upside movement.
Meanwhile, on the upside, the recovery is capped by $135.20 (SMA100 4-hour). It is followed by $136.70 (SMA50 4-hour and SMA200 1-hour). Once it is out of the way, the upside may be extended towards psychological $140.00 followed by the recent high of $146.60.
LTC/USD, 4-hour chart
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