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- Litecoin has halted the correction phase after falling from its monthly top.
- Buyers prepare to deposit LTC on the 200 day moving line.
- The buyers registered a sharp recovery last night following the continuation of the six red candles.
Litecoin price consolidated in a tight range for about 20 days from 24 November to 14 December. This sideways movement turned out to be wrong for the bulls, as the price recently corroborated and declined nearly 25% from its 30-day high.
Rising volatility kept the valuation of Litecoin down by the end of December. This price retracement predicts an upcoming “Santa Rally”. For that, the bulls should keep the crypto price above $60.
However, strength of bullish momentum appears low based upon its 4 hour chart. Litecoin’s $65.15 press time press reflects little negative circumstances for traders. Buyers may see a little more decline today because market king-Bitcoin trades below $17K, bears will definitely defend this level.
Market capitalization reported at 4.69 Billion as per overnight data which decreases for the past several days. The breakdown of 200 simple moving average (blue) was a big cause behind this decline. Still on a 4 hour chart, moves above the current price of LTC as of now. On the other hand, hourly RSI recovered from the oversold territory.
So far, Litecoin price has reached the support area, which was an important upside barrier before the bullish trend line was broken in late November. However, the $60 mark looks like a safe zone for the bulls from a short-term perspective. Conversely, the $80 level is a perfect example of a bullish barrier.
Buyers registered a sharp recovery last night following the continuation of the six red candles, while LTC price moved closer to the 200-day EMA on the daily price chart. The RSI is still moving in the highly oversold region, and could provide further bullish opportunities for Litecoin price.
Conclusion
Litecoin price is maintaining selling pressure in the market near the $60 support. The bulls need to reverse the LTC trend at this level before any major breakdown.
Support level – $60 and $50
Resistance level – $80 and $100
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
