Litecoin price receives trifecta of elements that underpin LTC before popping 13%


Share:
  • Litecoin price action is set to slide lower in search of support as the global mood is gloomy.
  • LTC is helped by three supportive elements about to kick in. 
  • Expect a small dip before LTC skyrockets back to $65.

Litecoin (LTC) price slipped another 3.5% intraday during the European trading session as it already took a step lower during the ASIA PAC opening session this week. Risk-off sentiment got activated in the markets as China had to report lockdowns again in some residential areas. A five-day lockdown to curb covid contamination seems to be the norm. This put pressure back on the supply chain and lifted inflation expectations in a domino effect, putting risk assets on the selling list for the coming days.

LTC price set to see a bounce higher

Litecoin price is thus being battered a bit this morning by global sentiment. Although that does not point to much upside, a silver lining comes with a triple supportive area coming into play. The first big supportive level is the 200-day Simple Moving Average (SMA) of $58.

LTC gets additional support if it undershoots the 200-day SMA near $57.12, which comes from the green ascending trend line that has seen many tests for both support. Should both the 200-day SMA and the ascending trend line not do the trick, the 55-day SMA is the last act of support as it kept price action supported at the end of October and currently comes in at $56 before spinning LTC up again toward $65 for a retest with 13% of gains in the books.

LTC/USD daily chart

LTC/USD daily chart

Should the trifecta element not play out and bearish forces become stronger, expect to see bears piercing through this support level. The risk would then materialize with a drop toward the monthly pivot at $54 and trigger around 13% of losses for this week. A continuation toward $50 is possible, but that would be on the back of another one-off event, such as last week with the missiles from the Russia-Ukraine conflict striking Polish soil.


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.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Shiba Inu price stagnancy brings investors’ losses to a 28-month high

Shiba Inu price stagnancy brings investors’ losses to a 28-month high

Shiba Inu has been rather dormant these past four weeks, which is bearing a negative impact on the investors. The meme coin market has been struggling to make headlines as the lack of increase in altcoin’s market value has left investors in peril, which is now driving them to pull back and wait until SHIB starts rising again.

More Shiba News

LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier

LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier

Lido DAO price is up over the past day as the market shifted its stance despite the SEC announcing a delay in the spot Bitcoin ETF applications of BlackRock among other applicants. However, this one-day rise is not enough for the likes of LDO that have been failing in recovering for a few weeks now.

More Lido DAO News

THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range

THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range

THORChain is testing a crucial multi-month obstacle after a remarkable climb. The move has completed the altcoin’s recovery rally following the 15% fall of September 27.  RUNE has outperformed the broader market, with Bitcoin and Ethereum recording only up to 3% in daily gains.

More Rune News

Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability

Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability

Chainlink put itself on the map with the help of its real-time data-feeding Oracles and is now in the spotlight for its interoperability protocol. Through this protocol, the blockchain project intends to not only connect two or five chains but also create the world’s largest liquidity layer, starting with Australia’s second-largest bank.

More Chainlink News

Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.

Read full analysis

BTC

ETH

XRP