- Litecoin price slides below $40.00; buyers likely to reclaim position above $40.00.
- The bullish trendline is working as a bounce wall support.
Litecoin made an incredible recovery in the course of the weekend trading. At the end of last week, LTC/USD was in a make or break situation while holding tight to the support at $32.00. A break below this vital support could have culminated in a breakdown towards the low around $22.7 (December 13, 2017).
However, the bulls prevented the breakdown by making an upward correction above the 23.6% Fib retracement level with the last swing high of $41.83 and a low of $31.96. The move skyrocketed above the half-hour Simple Moving Averages (50-day and the 100-day SMA). Litecoin maintained the upward trajectory throughout Saturday, breaking past the psychological $40.00. There was a movement towards the swing high but the momentum fizzled out as bears push for a retracement.
At the time of press, Litecoin is seen trading at $39.7. The bullish trendline is working as a bouncing wall for the price. The buyers are battling to recover above $40.00. The stochastic in the half-hour range is heading upwards to show that the bulls still have the power to push for gains if not to defend the support at $38.00. If LTC/USD can move above $40.00, then it’s likely that testing $42.00 could pave the way for more correction towards $50.00.
Looking at the chart, LTC is inclined to move sideways and upwards. On the flipside, in case of a reversal the above mentioned $38.00, and the vital support at $32.00 will come in handy to stop extended declines.
LTC/USD 30′ chart
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