Litecoin's technicals may keep bears at bay
- Litecoin has lost another 5% of its value.
- Technical setup points out to mild recovery.
Litecoin is changing hands at $28.35, down over 5% in the recent 24 hours. A sell-off on the cryptocurrency market dragged the coin into the bearish trend amid low market liquidity and high level of uncertainty. LTC/USD has lost over 23% from the recent peak reached at $37.12 during the Santa's rally.
Litecoin's technical picture
On the intraday level, LTC/USD broke below the short-term downside channel, so that its lower border now serves as a resistance level on approach to $28.50. Once it is cleared, the upside may be extended towards $$29.00 and $29.85 (SMA50, 1-hour). Also, strong hurdle lies with the psychological $30.00 followed by the upper border of the said channel at $0.3030.
On the downside, if $28.00 gives in, the sell-off may continue towards the recent low of $27.80 and to $25.00. However, considering that Relative Strength Index and Momentum Indicator are starting to reverse higher, the bears might have a hard time pushing the coin below the local support levels.
LTC/USD, 1-hour
Author
Tanya Abrosimova
Independent Analyst
