Litecoin Price Analysis: LTC/USD escaped bearish breakthrough, recovery capped by daily SMA50
- LTC/USD stays at $41.00 after a short-lived dip to $40.00.
- The initial resistance is created by daily SMA50 at $42.34.
Litecoin (LTC) recovered from the intraday low at $40.05 and settled above $41.00 by press time; LTC/USD has gained about 1.0% on Tuesday, moving in sync with the market. Litecoin is the 7th largest digital asset with the current market value of $2.6 billion and an average daily trading volume of $3.7 billion.
LTC/USD: On-chain data
According to the statistic provided by Intotheblock, only 14% of LTC addresses are in a green zone at the current price with a small cluster of 137k addresses with 1.8 million LTC waiting for the price to move towards $43.00, which will bring them to the break-even point. This area may serve as a resistance zone on the way to the next barrier$45.00 and psychological $50.00.
LTC/USD: Technical picture
On the daily charts, the initial resistance is created by daily SMA50 at $42.34. This area is also reinforced by the middle line of the daily Bollinger Band, which means that the bulls may have a hard time pushing the price above this area. Once it is out of the way, the upside is likely to gain traction with the next focus on $45.00 and $46.25 (the upper line of the daily Bollinger Band).
On the downside, the initial support is created by psychological $40.00, followed by the weekend low $39.53. Once it is broken, the sell-off may be extended towards the lower line of the daily Bollinger Band at $38.30 and April 16 low $38.00. This area is likely to slow down the bulls and push the coin into a range-bound trading mode.
LTC/USD daily chart
-637231431711160760.png)
Author
Tanya Abrosimova
Independent Analyst
