Litecoin price analysis: LTC/USD in retreat after a strong growth

  • LTC/USD resumed the downside amid global correction on the cryptocurrency market
  • The RSI implies more losses within the next hours.

Litecoin has gained over 5% in recent 24 hours, trading marginally below $34 at the time of writing. The 7th largest digital coin with market value $2B recovered from the multi-month lows in sync with other altcoins; however, the momentum may be fading away. LTC/USD failed to settle above $36.00 and lost 2% of its value since the beginning of Thursday.

On the intraday charts, LTC/USD is capped by congestion zone $35.00-$35.60 that stopped the recovery on November 20, creating a strong barrier for short-term Litecoin bulls. Once it is cleared, the upside may be extended towards $36.29 (Wednesday's high) and to DMA5 (now at $37.54). 

The Relative Strength Index (RSI) and momentum indicators are starting to reverse downwards, signaling that the price may continue sliding within the nest trading hours.  The local support is created by SMA50 (1-hour) right under $32.00, followed by SMA200 at $31.75. Once below, the sell-off will gain traction with the next aim at critical $30.00 This area is likely to attract speculative buyers, though if it is broken, the price will extend the sell-off towards to $25.00, the lowest level since June 2017.

LTC/USD, 1-hour chart

BEST BROKERS TO TRADE CRYPTO

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.