Litecoin price analysis: LTC/USD recovers above $65.00, further upside is limited
- LTC/USD needs to recover above $70.00 to improve the short-term technical picture
- The initial support is created by $65.00 handle.
At the time of writing, LTC/USD is changing hands at $65.64. The coin crashed below critical $70.00 on Wednesday amid strong sell-off in the crytpocurrecny market and etered a consolidation phase. While the sell-off has slowed down, the bearish sentiments are still predominant on the market. LTC/USD has lost 1.5% of its value since the beginning of the day and over 8.5% on a day-on-day basis.
Litecoin is now the fifth-largest digital asset with the current market value of $4.1 billion and an average daily trading volume of $2.9 billion.
Litecoin’s technical picture
On the intraday charts, a move below psychological $70.00 bodes ill for the short-term perspectives. We will need to see a sustainable move back above that handle to mitigate sellers’ pressure and improve the picture.
The initial support is created by psychological $65.00. It is followed by Wednesday’s low of $64.63 with the lower line of 1-day Bollinger Band located marginally below that handle. Once it is out of the way, the sell-off is likely to gain traction with the next focus $60.00. LTC/USD is trading at the lowest levels since April 2019. The coin has lost over 40% in recent three months, though it is still 120% higher from the levels registered at the beginning of the year.
On the upside, the middle line of 1-hour Bollinger Band at $69.15 serves as an initial resistance. Once it is out of the way, the upside is likely to gain traction with the next focus on critical $70.00 and $71.25 (SMA50 (Simple Moving Average) on 1-hour chart). A sustainable move above this area will take the coin back into the previous range and allow for further recovery towards $71.90 (the middle line of 4-hour Bollinger Band) and $72.80 (SMA50 4-hour).
LTC/USD, 1-hour chart
Author
Tanya Abrosimova
Independent Analyst
