- Litecoin retest support at $150 following rejection from the yearly high at $181.
- On-chain data shows that recovery back to $180 will be challenging, especially with a high seller concentration at $170.
Litecoin was rejected from levels above $170 barely a day after hitting a new yearly high at $181. The retreat occurred alongside Bitcoin’s rejection at $40,000. The bearish leg extended to $150 after failing to find support at $160. LTC has already resumed the uptrend above $160, but gains to $170 and $180 may not come easy.
Litecoin struggles to nurture the uptrend
At the time of writing, Litecoin is trading at $161 and holding slightly above the ascending parallel channel’s middle boundary. The price must hover above this critical level to sustain the uptrend heading to $170.
However, a daily close under the middle boundary or even $160 will derail the recovery. Simultaneously, the bearish action could call for more sell orders, creating enough overhead pressure for losses back to $150.
The Moving Average Convergence Divergence emphasizes the pessimistic outlook. A bearish divergence from the MACD hints at an intensifying bearish grip.
%20(21)-637456805487911777.png)
LTC/USD 4-hour chart
The IOMAP model provided by IntoTheBlock, a leading on-chain analysis platform, reveals that Litecoin recovery is heading into an immense resistance zone running from $170 and $175. Here, roughly 40,500 addresses previously bought approximately 3.6 million LTC. Note that a break past this zone could also see LTC spike towards $200.
On the downside, medium-strong support has been highlighted between $155 and $160. Here, nearly 35,000 addresses had previously bought almost 2.4 million LTC. If the price stretches under this area, the bearish leg could explore levels under $145.
-637456805907964584.png)
Litecoin IOMAP model
The confluence detector tool shows that robust support exists at $161. The buyer concentration zone has been highlighted by the 100 Simple Moving Average 1-hour and the daily 61.8% Fibonacci level.
LTC/USD confluence levels
This support must be guarded to avoid potential massive losses. On the upside, some delay is still expected at $162, as shown by the Bollinger Bands 4-hour middle curve. Another critical resistance level to keep in mind is $162.6, home to the 15-minutes previous high and the 1-hour previous high.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Coinbase lists WIF perpetual futures contract as it unveils plans for Aevo, Ethena, and Etherfi
Dogwifhat perpetual futures began trading on Coinbase International Exchange and Coinbase Advanced on Thursday. However, the futures contract failed to trigger a rally for the popular meme coin.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
Ethereum cancels rally expectations as Consensys sues SEC over ETH security status
Ethereum (ETH) appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the Securities & Exchange Commission (SEC) and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US Federal Bureau of Investigations (FBI) has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission (SEC) is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
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?