Litecoin price analysis: LTC/USD jumps out of the range, brings $130 back in focus
- The initial resistance for LTC/USD comes at $125.00.
- The strong support is created by trendline at $113.50.
Litecoin broke free from a tight range and touched $125.62 on Monday. While the LTC has retreated to $122.84 by the time of writing, it is still 3.3% higher on a day-on-day basis. The fourth largest digital asset with the current market capitalization of $7.7 billion and an average daily trading volume of $3.9 billion is moving in sync with the market, though further upside may be limited by technical factors.
Litecoin's technical picture
A sustainable move above $120.00 handle has improved the short-term technical picture and opened up the way towards the next bullish aim of $127.16 ( Simple Moving Average, SMA200 4-hour) with the ultimate short-term barrier at psychological $130.00. However, we will still need to clear $125.00. This resistance created by SMA100 4-hour stopped the recovery on Monday.
On the downside, the initial support is created by $120.00 with SMA50 4-hour and SMA50 daily located on approach. Once it is cleared, the sell-off is likely to gain traction with the next focus on $117.00 (the lower line of the recent channel) and $113.50(the short-term upside trendline). A sustainable move lower will bring the recent low of $112.25 come back into focus.
LTC/USD, 4-hour chart
Author
Tanya Abrosimova
Independent Analyst
