Tanya Abrosimova
Independent Analyst
- Litecoin has been losing ground amid global cryptocurrency market correction.
- LTC/USD is vulnerable to further losses as the daily RSI points to the South.
Litecoin, the 7th largest digital coin with the current market value of $3.6 billion, lost over 6.5% in the recent 24 hours amid global correction on the cryptocurrency market. At the time of writing, LTC/USD is changing hands at $57.20, off the recent high registered at $63.17 on January 17.
Currently, the coin is moving sideways in sync with the market. As there are no clear fundamental factors that might have influenced Litecoin's price movements, the coin is affected mostly by speculative sentiments and technical factors. Namely, a retreat below the psychological $60.00 attracted new speculative sellers to the market and increased the short-term bearish pressure.
LTC/USD: technical picture
LTC/USD touched an area above $63.00, however, the upside momentum proved to be unsustainable at this stage. A wide-spread downside correction on the market pushed the coin towards $57.00 with the next local support created by SMA50 4-hour on approach to $56.00. Once it is broken, the sell-off may be extended towards $51.00 (SMA100 4-hour) and $50.50 (a combination of SMA100 daily and the middle line of the daily Bollinger Band.
This area is likely to slow down the correction and serve as a jumping-off ground for another recovery attempt; however, if it is out of the way, SMA50 daily a $5.50 will come into focus.
On the upside, the initial resistance is created by the middle line of the 4-hour Bollinger Band at $59.00. We will need to see a sustainable move above this level to retest $60.00 and the recent high of $63.17. The ultimate bulls' goal is created by SMA200 daily at $64.54.
Considering that the daily RSI points to the downside, LTC/USD may be well-positioned for an extended bearish correction before another bull's wave.
LTC/USD daily chart
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?