Tanya Abrosimova
Independent Analyst
- Litecoin retreated from the recent high after a strong rally.
- The price may extend the decline if it fails to clear $130.
Litecoin (LTC) topped at $139.3 on December 27, and the bulls hit the pause button. At the time of writing, the token is changing hands at $128, down 4% on a day-to-day basis. Despite the retreat, it is still 25% higher on a weekly basis. Litecoin is highly correlated with Bitcoin. So the see-off of the pioneer digital currency from the all-time high at $28,250 dragged LTC down.
Currently, Litecoin is the 5th-largest digital asset with a current market capitalization of $8.5 billion and an average daily trading volume of $9.9 billion. The coin may soon outpace XRP as the token is losing ground rapidly amid legal issues with the SEC.
Litecoin is ready for a correction
As FXStreet previously reported, LTC experienced a strong bullish momentum that took the price from $70 to nearly $140. The price doubled in less than a month without any meaningful retreats.
The LTC has made several attempts to clear $130, but the upside momentum faded away each time the price moved above this area. This is visible on a daily chart. A sustainable move above this area is needed for the upside to gain traction with the next focus on $140 and $146, which is the highest level since June 2019.
LTC, daily chart
On the other hand, a failure to clear this barrier will result in a sell-off towards $100. This support is critical for Litecoin's bull trend. If it gives way, the immediate positive scenario will be invalidated with the next stop at $90-$87. This area served as resistance in November and December. Now it is also reinforced by the daily EMA50.
%20Analytics%20and%20Charts-637448455060653682.png)
LTC, In/Out of the Money Around Price (IOMAP)
Meanwhile, In/Out of the Money Around Price (IOMAP) data confirms a strong resistance on approach to $130 as over 51,000 addresses purchased million LTC from $130 to $134. If this area is cleared, the buying pressure will increase. The price may quickly reach the next target of $146.
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
Worldcoin Price Prediction: Is WLD done with uptrend after 77% rally?
Worldcoin has paused its uptrend as it currently trades at $1.57. This move comes after the altcoin rallied a whopping 77% in just three days, between September 13 and 16. As WLD hovers aimlessly, investors need to be patient to catch the next volatile move.
Ethereum whales prepare ahead of futures Ethereum ETF approval on October 2
Ethereum (ETH) price is likely going to witness a massive spike in volatility soon due to the circumstances surrounding the approval of the token’s futures Exchange-Traded Fund (ETF). According to Twitter users, the ETF is likely going to be approved on October 2.
Ripple Price Forecast: Declining network growth and underwater XRP holders suggest more downside for XRP price
Ripple (XRP) price shows a lack of buying pressure after its win against the US Securities and Exchange Commission (SEC) on July 13. Since then, the remittance token has been on a downtrend. Considering Ripple’s current position, a further decline would not be surprising.
Chainlink Price Prediction: LINK bears set to wipe 25% gains
-637336005550289133_XtraSmall.jpg)
Chainlink price shows an exhaustion of the bullish momentum as it approaches a key reversal zone. This development could see LINK trigger a steep correction that could undo recent gains.
Bitcoin: BTC downside likely after 20-week EMA culls bulls
Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.