|

Litecoin Price Analysis: LTC/USD hovers around $50.00 amid growing bearish pressure

  • Litecoin has lost over 14% on a day-to-day basis amid major sell-off on the market.
  • The critical short-term support is created by the intraday low of $47.50.

The cryptocurrency market is a panic selling mode, and Litecoin is not spared. LTC/USD hit $47.50 low during early Asian hours, which is the lowest price since January 10. The 7th largest digital asset has lost over 14% in the recent 24 hours amid major collapse on the market caused by massive risk-aversion and technical factors that keep pushing prices to new lows. Litecoin's daily trading volume is registered at $5.1 billion, which is nearly 25% higher from the recent average figures. LTC's market value reduced to $3.2 billion

LTC/USD: Technical picture

On the longer-term scale, LTC/USD dropped below SMA100 daily (currently at $56.00) and tested the area below the lower line of the daily Bollinger Band (currently at $48.49). At the time of writing, LTC/USD is desperately trying to settle above $50.00, which is needed for an extended reocvery with the first aim at the above said SMA100. Once it is out of the way, the upside is likely to gain traction with the next focus on $60.00. However, considering the plat RSI on the daily chart, the price may enter a consolidation phase before the upside correction sets in.

On the downside, a sustainable move below $47.50 will expose psychological $40.00 and the lowest level of 2020 at $38.74. If this area gives way, LTC will enter an uncharted territory with the potential to extend the decline to December low of $35.78.

LTC/USD daily chart

On the intraday charts, LTC/USD is supported by $48.00 with the lower line of 1-hour Bollinger Band located right below this level. The next support is created by the intraday low of $47.50 and psychological $47.00. On the upside, the initial target is created by $50.00, which is followed by $53.00 ( the middle line of 1-hour Bollinger Band). However, a stronger resistance comes on approach to $58.00 (SMA50 1-hour and the upper line of 1-hour Bollinger Band).

LTC/USD 1-hour chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

More from Tanya Abrosimova
Share:

Editor's Picks

Bitcoin braces for US midterm elections as historical sell-offs revive downside concerns

Bitcoin (BTC) braces for the impact of the US midterm elections, just a week after the $6 billion hack from Binance. Historically, congressional elections have negatively affected not just the president’s party but also Bitcoin.

Bitcoin slips below $78,000 amid ETF outflows

Bitcoin (BTC) slips below $78,000 at the time of writing on Monday after posting its fourth straight weekly loss. Institutional demand shows signs of weakening, with spot Exchange Traded Funds (ETFs) recording outflows of over $202 million last week.

Crypto Today: Bitcoin, Ethereum and XRP consolidate amid weak market sentiment

Bitcoin hovers above $78,000, building on the 100-day EMA support as market sentiment remains weak. Ethereum shows signs of recovery near $2,300, though upside remains technically capped.

Pi Network tests long-term resistance breakout as selling pressure wanes

Pi Network edges higher on Monday, testing the bullish breakout of a long-term resistance trendline. Fear and Greed Index declines to 36 from 43 last week, indicating reduced risk appetite.

Bitcoin: Binance security breach and hawkish Fed push BTC lower
Bitcoin (BTC) continues to weaken this week, down more than 3% and heading for its fourth straight weekly loss. The largest cryptocurrency by market capitalization is facing a bearish outlook, fueled by a hawkish Federal Reserve (Fed) outlook at the October meeting and a reported $6.3 billion hack at Binance, which is driving risk aversion and triggering heavy liquidations.