Litecoin price analysis: LTC/USD fails to break free from the range ahead of halving
- LTC/USD is sitting in a tight range despite the upcoming halving.
- A sustainable move above $95.70 is needed for an extended recovery.
Litecoin (LTC) is oscillating in the range limited by $90.00 on the upside and $94.00 on the downside ahead of the major event. The fifth-largest cryptocurrency with the market value of $5.8 billion has lost about 3.5% of its value on a day-on-day basis and 1.1% since the beginning of Sunday.
Halving on the horizon
Litecoin's halving is supposed to happen on August 5, which means that there is less than one day before the event. Traditionally, the cryptocurrency price is growing ahead of the halving as it leads to the reduced miners' remuneration and thus enhances the deflationary effect.
However, Litecoin has lost nearly 25% of its value in the recent month after a strong growth during the first half of the year.
Litecoin's technical picture
On the intraday charts, LTC/USD is initially supported by psychological $90.00. This area is strengthened by the lower line of 4-hour Bollinger Band. Once it is out of the way, the sell-off is likely to gain traction with the next focus on $83.41 (the lowest level since July 27).
On the upside, we will need to see a sustainable move above $94.00 barrier to proceeding with the recovery. SMA100 (Simple Moving Average)on 4-hour chart located above this area may slow down the upside momentum. However, once int is broken, $95.40 (the middle line of 4-hour Bollinger Band) will come into focus.
The next strong resistance comes at $95.70 (confluence of SMA100 and the upper line of Bollinger Band on 1-hour chart).
LTC/USD, 4-hour chart
Author
Tanya Abrosimova
Independent Analyst
