- Litecoin recovered marginally above the primary support at $50.00 as buyers find a breather amid falling prices.
- The upside has been capped below the 100 SMA and $57.00 while subtle lower corrections test $55.00 support.
Litecoin price, like many coins and altcoins corrected higher on Wednesday. The cryptos have come under heavy bear pressure in the market for the last couple of weeks. However, today the bulls had a breather, although a brief one. Litecoin, for instance, recovered from the primary support at $50 and changed hands slight above $56.00.
The bullish trend, however, came to a halt on the 100-day hourly moving average. The bulls are battling to keep the price above the short-term support at $55.00. The 50% Fib level with the previous swing high of $60.18 and a swing low of $50.54 at $55.30 is proving support as well. Another support line is highlighted by the 50 simple moving average at $54.42.
The bulls influence on the price is still high, besides the stochastic is still oscillating above the 70% mark. LTC/USD is also trading within a contracting and to ensure a sustain path to $60.00, the buyers must break above the resistance of the triangle pattern at $57.00. Litecoin is likely to move higher in the short-term but support above $55.00 must be protected. The crypto will break down further if the contracting triangle support is broken at $54.00. Consequently, a drop to the primary support is still quite apparent.
In other news, Litecoin founder Charlie recently wrote on Twitter that the Lightning Network (LN) atomic swap makes Litecoin to be effective as Bitcoin (BTC) sidechain. He went ahead to make it clear that Litecoin as a Bitcoin sidechain is much more secure in comparison to merged mining of regular sidechains. This can ensure that value is transferred from chain to chain much faster and cheaper.
LTC/USD hourly chart
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