Litecoin Price Analysis: LTC/USD directionless ahead of the New Year
- LTC/USD has retreated below $43.00 amid low market activity.
- The technical picture implies that the coin may continue range-bound trading.
Litecoin (LTC), the sixth-largest digital asset with the current market capitalization of $2.7 billion, has lost 3.5% in recent 24 hours. At the time of writing, LTC/USD is changing hands at $42.20 amid low trading volumes.
Litecoin is moving in lockstep with the rest of the market, which makes it vulnerable to overall bearish sentiments. The coin may continue the range-bound trading with the downside bias into the New Year.
Litecoin's technical picture
LTC/USD topped at $44.00 on Monday; however, the upside proved to be unsustainable. The local support is created by the middle line of the daily Bollinger Band at $41.50. Once it is out of the way, the sell-off is likely to continue with the next focus on psychological $40.00 and the recent low of $39.50. If it is broken, the sell-off may start snowballing towards a psychological $30.00.
On the upside, a sustainable move above the local top of $44.00 will open up the way towards $45.00 with the upper line of the daily Bollinger Band located on approach. Also, a strong barrier awaits us at $46.50. It is created by SMA50 (Simple Moving Average). The coin has been trading below this MA since December 18; thus, if it is cleared, the upside momentum may gain traction and push the price towards $50.00 and SMA100 at $51.80.
LTC/USD daily chart
Author
Tanya Abrosimova
Independent Analyst
