Tanya Abrosimova
Independent Analyst
- Litecoin collapses from the intraday high to trade below SMA50 1-hour.
- The downside momentum may be extended towards $73.00.
Litecoin (LTC) fell victim to massive volatility in the cryptocurrency market. The 7th largest coin with the current market value of $5 billion hit a new high of 2020 at $84.50 and dropped like a stone to $77.25 in a matter of hours. At the time of writing, LTC/USD is changing hands at $78.33, down nearly 3% since the beginning of the day.
Currently, about 48% of all LTC addresses are in a green zone, though, bid and ask imbalance is skewed to the bearish side, which means the coin may be vulnerable to further losses.
LTC/USD: The short-term technical picture is gloomy
On the intraday charts, LTC/USD came close to strong local support created by SMA100 1-hour at $77.00. A layer of buy orders located around that level engineered a rebound; however, once it is broken, the sell-off may be extended towards $75.20 (SMA200 1-hour) and $73.00 (the upper boundary of the previous consolidation channel).
On the upside, a sustainable recovery above SMA50 1-hour on approach to $79.00 will allow for a stronger rebound towards psychological $80.00 followed by the recent high of $84.50.
The intraday RSI points downwards with no sighs of reversal as of yet.
LTC/USD 1-hour chart
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