Tanya Abrosimova
Independent Analyst
- LTC/USD is losing upside momentum as fundamentals do not support it.
- Bulls need to regain $125.00 before they move towards $130.00.
Litecoin's transformation from an outsider to market leader seems miraculous, but market positioning can easily explain it. As we reported on Thursday, many traders were speculating about "dump and pump scheme" launched by big players and were getting ready to buy Litecoin once the price reached $100.00. LTC/USD fell as low as $109.45 during Asian hours before rebounding to $125.00 ahead of European opening.
Litecoin gained nearly 5% on the day, but the upside looks limited as the price hit resistance created by 50-SMA (hourly interval). Weak momentum confirms the theory that the rebound is driven by market positioning instead of really solid fundamentals. Litecoin's 12-hour volatility spike from 1.92% to 3.7% coincided with the price rebound and growing trading volumes. Both indicators are moving down again, signaling that the momentum is gone
Litecoin price technical picture
LTC/USD is trading at $119.00 off the intraday high. The bulls need to clear $125.00 hurdle before they have a chance to try their luck with $130.00, the level that has to be taken out to reduce the selling pressure. On the downside, a sustained move below $120.00 brings Asian low $109.45 into focus once again, with the next support lines at $105.31 (February 6 low) and $100.00.
LTC/USD, the hourly chart
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