- LTC/USD retraced from Monday’s high of $59.23.
- More sell-off may be in store if $53.00 is cleared.
Litecoin, the 7th largest digital asset, is changing hands at $54.77 handle, unchanged both on a day-on-day basis and since the beginning of Tuesday. The coin moves in sync with other digital assets, locked in a range after Monday’s wild gyrations. Litecoin’s market value is registered at $3.2B and an average daily trading volume $343M.
Litecoin’s technical picture
Relative Strength Index (RSI) is pointed downwards, though it is still in the overbought territory, which means that the risks are tilted to the downside with the initial bearish aim at the congestion zone $53.00-$53.50. Once it is cleared, the sell-off may be extended towards psychological $50.00 and to the ultimate target at $48.90 created by the lower border of the short-term downside channel.
On the upside, a potential recovery is capped by $56.20 (an upper border of the above-said channel), this resistance is followed by $57.00-$57.20 congestion area that includes SMA100 and SMA200 (4-hour chart). A sustainable movement above this hurdle is a precondition for an extended recovery towards $60.00.
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