- The 8th largest coin took off from dangerous support level.
- LTC/USD may extend the recovery, once $32.00 is out if the way.
Litecoin staged a nice recovery on Tuesday and extended gains early on Wednesday. The 8th largest digital asset with a market value of $1.9 and an average daily trading volume $566M is flirting with $32.00 at the time of writing. The coin has gained 2.5% on a day-over-day basis and nearly 1% since the beginning of the Asian trading session on Wednesday.
While LTC is moving with the market, technical factors supported the recovery and helped the coin to keep earlier gains.
Litecoin’s technical picture
From the intraday point of view, LTC/USD broke above %31.50 support created by SMA50 (4-hour). This development sets the stage for an extended recovery; however, the bulls have to make sure that psychological $32.0 is definitely out of the way. The next resistance lies with $32.70 (SMA200, 4-hour). It is closely followed by $33.00 and $33.40 (this barrier is created by a confluence of DMA20 and SMA100, 4-hour).
A sustainable move higher will take us to $35.50 - 38.2% Fibo retracement level offer the downside movement from November 6 high at $56.17.
On the downside, the strong support level is created by DMA50 (currently at $30.74) and 23.6% Fibo retracement level. This area serves as a jumping off the ground level for the coin, though, if it is broken, the sell-off may start snowballing with the next bearish aim at $27.80 (December 27 low).
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