Litecoin price analysis: Recovery to gather steam above 118.00
- Litecoin tracks the recovery in its rivals, led by Bitcoin.
- Bulls target a break above 20-hourly SMA for a sustained recovery.
The fifth most traded cryptocurrency, Litecoin, is seen making recovery attempts so far this Saturday after having witnessed aggressive selling earlier today amid a broader market sell-off. The coin stalled its correction post-Thursday’s slump and fell as low as 115.08 before recovering to 117.50 levels, where it now wavers.
Litecoin (LTC/USD) has managed to recover nearly 1.7% over the last 24 hours but still remains 17% down over the week. Despite such a big loss in value, Litecoin maintains a market capitalization of $7.34B, or 2.18% of the total cryptocurrency market cap.
Looking ahead, the technical picture on the hourly sticks points to a potential upside only if the prices manage a sustained break above the 21-hourly Simple Moving Average (SMA) that is located at 117.96. The Relative Strength Index (RSI) bounced from the oversold territory and ticked upwards, strengthening the case for the continued recovery momentum.
Should the coin fail to chew the offers near the 118 handle, the rates could revisit the daily lows. A break below the last would bring the 50-daily SMA at 114.40 back in play.
LTC/USD 1-hour chart
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Levels to Watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
