Litecoin price analysis: LTC/USD supported by DMA200
|- LTC/USD needs to recover above $50.00 to negate the downside pressure.
- A move below DMA200 will trigger strong selling.
Litecoin (LTC) is hovering around $46.00 handle, having recovered from Monday’s low at $45.10. The 5th largest coin with a market value of $2.8B has been lost 3% of its value since this time on Monday, moving in sync with the rest of the market. However, it is still in green territory on a week-on-week basis.
From the longer-term point of view, DMA200 at $44.53 creates formidable support for LTC/USD. This area is going to be a hard nut to crack for Litecoin bears unless the overall market sentiments worsen significantly.
A sustainable move below this level will expose psychological $40.00 and $39.39 (DMA50). The critical support is created by a confluence of the upside trend line and with DMA100 on approach to $35.00. A breakthrough will signal the end of the recovery from December 2018 low of $22.51.
On the upside, we need to see a strong move above psychological $50.00with further recovery towards $53.94. However, this development looks less likely at this stage, considering that bearish sentiments dominate the cryptocurrency market.
An immediate resistance lies with $47.00-$47.25 (SMA100, 4-hour). It is followed by Monday’s high of $47.88 and Sunday’s high at $49.59.
LTC/USD, 4H chart
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