LTC/USD tumbled yesterday after China decided to ban financial institutions and payment companies from providing services related to cryptocurrency transactions. This one of multiple hits the crypto world has received, one of which was a week ago, when Elon Musk tweeted that Tesla would stop accepting Bitcoin as payment for its cars. Yesterday’s tumble took Litecoin below the upside support line drawn from the low of December 11th, which suggests that more declines may be in the works.

After hitting support at 131.00, Litecoin rebounded, but still stayed below the aforementioned upside line. Even if the recovery continues for a while more, the bears may decide to charge again from near that line and bring the price down for a test at today’s current low of 165.00. A break lower could aim for yesterday’s low of 131.00, where another break may take the crypto into territories last tested in February. The next support zone could be at 117.50, marked by the low of January 27th, or the psychological round figure of 100.00.

Shifting attention to our short-term oscillators, we see that the RSI rebounded from its below-30 territory and just crossed above 30, while the MACD, although below both its zero and trigger lines, shows signs of bottoming as well. Both indicators detect slowing downside speed and support the notion for some further recovery before the next leg south.

Now, in order to start examining whether the bulls have gained back control, we would like to see a rebound back above 260.00, a resistance marked by the inside swing low of Monday. This would also take the crypto above the pre-mentioned upside line and may encourage advances towards the 317.00 zone, marked by Tuesday’s high, or towards the high of last Friday, at 338.00. If neither obstacle is able to stop the buyers, then we may see extensions towards the 393.00 zone, marked by the high of May 12th, or the all-time peak, at 413.00, hit on May 10th.

LTCUSD - One-stop Multi-asset Experience for Trading and Investment Services

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure:

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

LUNA 2.0 price is primed for 60% rally

LUNA 2.0 price is primed for 60% rally

LUNA price breached the range it was trading in and crashed violently in June. However, buyers seem to be making a comeback, suggesting that a recovery rally is in effect. The ongoing retracement hints at a 60% upswing to $3.50.

More Terra news

How trade SafeMoon price for a quick profit?

How trade SafeMoon price for a quick profit?

SafeMoon price gets ready for a quick run-up amid a bearish challenge. As a result, SAFEMOON has been consolidating below a crucial resistance barrier. Investors can expect the altcoin to resume its run-up soon.

More SafeMoon news

ApeCoin price edges near a critical level, is the uptrend genuine?

ApeCoin price edges near a critical level, is the uptrend genuine?

ApeCoin price shows compression of two Simple Moving Averages as price consolidates. APE price shows bullish re-entrance on the Volume Profile pattern, but traders should steer away from being early buyers. Invalidation of the bear trend remains at $6.15.

More ApeCoin news

Cardano Price Prediction: Can the release of Node 1.35 trigger a 40% rally

Cardano Price Prediction: Can the release of Node 1.35 trigger a 40% rally

Cardano price seems to be preparing for massive gains as Vasil hard fork takes one step closer to becoming a reality. In a recent Twitter thread, IOHK, the developers behind Cardano announced the launch of Cardano node 1.35.0 on June 25.

More Cardano news

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis