Litecoin sentiment: the correction is not over yet
- LTC/USD is sliding within a tight channel.
- The daily RSI signals that the correction is not finished.
LTC/USD is changing hands at $42.52, down over 1.5% since this time on Tuesday. The coin retraced from the recent high at $47.36 and has been trading in a range limited by $41.00-$45.00.
While the correction after a strong growth looks natural, the technical picture remains positive as long as the price stays above $40.00. This psychological level is protected by SMA50 (4-hour chart).
From the long-term point of view, the further upside may be limited by $46.70 (DAM200). Once it is cleared, the recent high of $47.36 and psychological $50.00 will come into focus.
On the downside, the critical support area is created by a confluence of DMA100 and DMA50 at $34.50-$34.00. A sustainable move lower will negate the recent upside leg and push the coin back into the bearish trend.
The Relative Strength Index on a daily chart has reversed from the overbought territory. It points to the South, which implies that the correction is not over yet.
LTC/USD, 1-day chart
Author
Tanya Abrosimova
Independent Analyst
