Litecoin is increasingly used as a store of value

Litecoin, the 6th largest digital coin with the current market value of $3.1 billion, lost over 1.7% in recent 24 hours amid global correction on the cryptocurrency market. LTC/USD is changing hands at $49.78, off the intraday high registered at $51.58. The coin has settled below SMA50 1-hour at $50.20, which now serves as an initial resistance level. 

Litecoin HODLer camp is growing

There has bee no major updates that might have triggered sharp price movements, which means that LTC/USD is vulnerable to general market sentiments and technical factors. According to the recent report, published by Litecoin.com, over 40 million LTC coins has been dormant for over a year. The accumulation of the coins has started approximately in December 2018, when the market hit the lowest point of the bearish cycle.  

Notably, the number of dormant LTC addresses has increased from 1.21 million in January 2019 to 1.88 million at the time of writing, according to the cryptocurrency analytical service Intotheblock. This data supports the accumulation theory and implies that Litecoin holders are now less inclined to get engaged in speculative trading.  

LTC/USD: technical picture

LTC/USD is locked in a tight range limited by psychological $50.00 closely followed by SMA50 1-hour ($50.20) and SMA100 daily at $51.30. On the downside, the price is supported by the lower line of 1-hour Bollinger Band ($49.30) and the middle line of 4-hour Bollinger Band at $49.00. If the support gives way, the sell-off may be extended towards SMA100 1-hour at $48.00 and SMA200 1-hour at $46.60.

Considering that 1-hour RSI is trying to reverse to the upside, LTC/USD may be well-positioned for another recovery attempt. Once the above-said resistance area gives way, the upside momentum may gain traction with the next aim at the upper line of 1-hour Bollinger Band at $51.30 followed by the intraday high of $51.58 and the recent high of 2020 at $51.90. 

LTC/USD 1-hour chart