Litecoin Price Analysis: LTC/USD take a break before another move towards $45.00

Litecoin (LTC) is moving within a short-term downside bias after a failed attempt to settle above $44.00. The coin is trading at $43.95, mostly unchanged both since the start of the day and on a day-to-day basis, off the recent high reached at $44.65. Litecoin is the seventh largest digital asset with the current market value of $2.8 billion and an average daily trading volume of $1.5 billion.  

LTC/USD: Technical picture

On the intraday charts, LTC/USD has settled in the lower part of the Bollinger Band amid growing bearish pressure. The RSI on 1-hour chart points downwards, which means that the correction may be extended towards the local support created by 1-hour SMA50 at $43.70. This area served as a strong channel resistance zone and now has a potential to stop the sell-off. If it is broken, LTC/USD will return inside the previous range with the next short-term support at $43.00. On the upside, we will need to see a sustainable move above $44.00. The next resistance is created by the recent high of $44.65. Once it is out of the way, the recovery may be extended towards $45.00.

LTC/USD 1-hour chart

On the daily chart, LTC/USD is supported by SMA100 located on approach to the above-mentioned support of $43.00. This technical barrier has limited the sell-off since June 11, as numerous attempts to break below this level were heavily bought. The next support lines come at $41.50 and psychological $40.00. The later barrier is reinforced by May 11 low at $39.50.

The daily SMA50 and the middle line of the Bollinger Band add strength to the above-mentioned resistance of $44.65. A sustainable move above this area will open up the way to $50.00 with daily SMA200 located on approach. This MA stopped the recovery earlier this month and may be a hard nut to crack for the bulls.

LTC/USD daily chart