Litecoin price analysis: LTC/USD knocks on a channel support, $55.00 under attack
|- A psychological $55.00 is under threat, more selling if broken
- The ultimate short-term resistance is created by $56.76.
Litecoin, the 7th largest digital asset with a market value of $3.2B, is changing hands at $55.04 with 5% loss on a day-to-day basis. The coin's average daily trading volumes are set at $304M, which is slightly higher than the longer-term average. Litecoin has retraced from Sunday's high registered at $61.68, as the bullish fever faded away after a wild rollercoaster of the previous week. LTC is still moving within a short-term upside channel, which means that the bullish trend may be resumed.
Litecoin's technical picture
As it is clearly visible on a 4-hour chart, Litecoin stopped within a spitting distance of critical support created by psychological $55.00 and enhanced by the lower border of the above-mentioned upside channel. Once it is cleared, the sell-off may gain traction and take the price towards September 19 low at $51.66 and further down to $50.00.
However, if the channel support withstands the bullish onslaught, LTC/USD will start recovering into the interior of the channel with the first bullish target at $56.76 (SMA50, 4-hour chart) and $58.00 (SMA200, 4-hour chart). That's where new sellers may jump in and push the price back. However, if this area is cleared, the recovery may be extended to $60.00.
LTC/USD, 4-hour chart
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