• Litecoin retreated below $44.00 after a strong reovery in Asia.
  • The critial resistance of $45.00 separats the coin from an extended upside move.

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

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Why LUNA traders do not have to be in the market all the time

Why LUNA traders do not have to be in the market all the time

Terra (LUNA) price action has slipped below a critical level outlined a few days ago. As price action moves start to get smaller, a big move is set to happen, but it is very cloudy to see where that move will be going.

More Terra News

SEC vs. Ripple case, two key decisions awaited by XRP holders

SEC vs. Ripple case, two key decisions awaited by XRP holders

XRP holders are awaiting key decisions in the SEC vs. Ripple case. Experts believe judge Sarah Netburn could rule on the two key decisions in the lawsuit against payment giant Ripple. 

More Ripple News

MATIC price explodes as Polygon achieves Carbon neutrality

MATIC price explodes as Polygon achieves Carbon neutrality

MATIC’s purchase of carbon credits through KlimaDAO partnership represented 104,794 tonnes of greenhouse gasses, equivalent to the Ethereum scaling solution’s debt since 2019. Carbon neutrality has fueled a bullish sentiment among traders and 

More Polygon News

Things have suddenly changed for the Shiba Inu price, is the bottom in?

Things have suddenly changed for the Shiba Inu price, is the bottom in?

Shiba Inu price may have bottomed but this can only be confirmed if the current rally persists. Traders should be aware of several factors. Shiba Inu price has suddenly changed as the bulls have printed a significantly large bullish engulfing candle on the daily chart. 

More Shiba Inu news

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis