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Litecoin Price Analysis: LTC/USD needs to recover above $43.50 to improve the short-term picture

  • Litecoin has been moving in sync with the market; down nearly 4%.
  • The critical resistance is created by a host of technical indicators on approach to $43.50.

Litecoin (LTC) dropped to the intraday low of $41.61 and recovered to $42.63 by the time of writing. The coin has been moving in sync with other digital assets, swept by a massive bearish wave. LTC/USD lost nearly 4% since this time on Wednesday and stayed mostly unchanged since the beginning of the day. Litecoin is the seventh largest digital asset with the current market value of $2.76 billion and an average daily trading volume of $1.53 billion. 

LTC/USD: Technical picture

On the intraday charts, LTC/USD recovery is capped by $42.50-$42.70 area, which includes the middle line of the 1-hour Bollinger Band and the upper border of Wednesday's consolidation channel. Once it is cleared, the recovery may be extended towards $43.00 and $43.50, reinforced by a combination of 1-hour SMA100 and SMA200. The RSI on 1-hour chart stays flat in a neutral position, which means the coin may stay sidelined during the nearest trading hours. 

On the downside, a sustainable move below $42.00 will worsen the technical picture and bring the recent low of $41.61 into focus. 

LTC/USD 1-hour chart

The daily chart shows that LTC/USD sell-off stopped short of the lower line of the Bollinger Band (currently at $41.50). A thick layer of buy orders helped to trigger a recovery, however, the coin is not put of woods as long as it stays below daily SMA100 located on approach to the above-mentioned resistance of $43.50. Once it is out of the way, the recovery may be extended to $44.50 (daily SMA50) and $45.00.

LTC/USD daily chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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