Litecoin price analysis: LTC/USD claws back some losses, up 2%
- LTC/USD has regained some ground, managed to stay above $90.00 handle.
- The strong support is created by $86.50 level.
Litecoin (LTC) has returned to the area above $90.00 handle after Sunday's sell-off that took the coin towards the recent low of $84.41. The fourth-largest digital asset with the current market capitalization of $5.6 billion is trading at $90.60, gaining about 2% on a day-on-day basis and 1% since the beginning of Monday. LTC/USD is moving in sync with the broader market as thee are not clear fundamental reasons behind the recent movements.
Litecoin's technical picture
On the intraday charts, LTC/USD is initially supported by psychological $90.00. Once this barrier is broken, the sell-off may continue towards $86.50 strengthened by the lower line of 4-hour Bollinger Band. The recent low of $84.41 creates the next support with 50.0% Fibo retracement (for the significant upside move from $22.88 low) located on the approach to that handle. The lower line of 1-day Bollinger Band (currently at $81.80)is likely to stop the downside for the time being.
On the upside, we will need to see a sustainable move the intraday low of $92.30. This development will create a bullish impulse that will push the price towards the next critical barrier of $93.50. A confluence of SMA50 (Simple Moving Average) and SMA100 (4-hour) makes this barrier a hard nut to crack for LTC bulls. However, once it is cleared, the bullish trend is likely to gain traction with the next focus on $95.00
LTC/USD, 4-hour chart
Author
Tanya Abrosimova
Independent Analyst
