Litecoin Chart Analysis: LTC/USD move to $50.00 is unlikely at this stage
- LTC/USD stays in a tight range with the initial resistance at $47.00.
- Downward-looking RSI implies the movement to psychological $40.00.
Litecoin (LTC) recovered from the intraday low at $41.45 and settled above $46.00 by press time; LTC/USD has stayed mostly unchanged on Tuesday, and lost over 1% of its value, moving in sync with the market. Litecoin is the 7th largest digital asset with the current market value of $3.0 billion and an average daily trading volume of $2.0 billion.
LTC/USD: On-chain data
According to the statistic provided by Intotheblock, only 28% of LTC addresses are in a green zone at the current price with a small cluster of 177k addresses with 3.38 million LTC waiting for the price to move towards $47.00-$54.00, which will bring them to the break-even point. This area may serve as a resistance zone on the way to the next barrier psychological $60.00.
LTC/USD: Technical picture
On the daily charts, LTC is dormant in a tight range with bearish bias. On June 2, the coin attempted a recovery towards $50.00, however, daily SMA200 located on approach to that barrier discouraged the bulls and triggered the downside correction. LTC/USD returned to the previous range limited by 47.00 on the upside and $44.00 on the downside and has been sitting there ever since.
On the upside, a sustainable move the channel support will bring the price towards the upper line of the daily Bollinger Band at $49.00. It is closely followed by daily SMA200 at $49.50. Once it is out of the way, the upside is likely to gain traction with the next focus on psychological $50.00. A cluster of selling orders may slow down the recovery; however, if it is cleared, LTC/USD may extend the recovery towards $54.00 with the ultimate bullish aim at $60.00.
Meanwhile, the downward-looking RSI on a daily chart brings bearish short-term forecasts to the fore.
On the downside, the initial barrier is created by the above-said channel support at $44.00, reinforced by daily SMA100. It is followed by the lower line of the daily Bollinger Band at $41.40 and psychological $40.00. Once it is out of the way, the sell-off may continue towards April 16 low $38.00. This area is likely to slow down the bulls and push the coin into a range-bound trading mode.
LTC/USD daily chart
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Author
Tanya Abrosimova
Independent Analyst
