Litecoin market update: LTC/USD gazes into a bottomless pit

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  • Litecoin suffers yet another blow on failing to break $55 resistance zone.
  • The zone $50 – $53 is presenting itself as a key support that must be defended at all cost.

The cryptocurrency market suddenly turned bearish on Friday. Although the Asian session was characterized by intense pressure on support areas, most of the damage has been made during the current European session.

Litecoin resumed the downtrend after testing $55 on Thursday. The bears are extending the leg towards $50. However, LTC/USD is holding ground above $53.

The immediate upside is limited by the 100 Simple Moving Average (SMA) on the hourly chart currently at $56.68. The two months-long trendline is still restricting gains on the upside. Besides, the double-cross of the 100 SMA below the 200 SMA $68 suggests that traders should expect a lower consolidation in the near-term.

The dropping Relative Strength Index (RSI) puts emphasis on the escalating bearish pressure. The downside presents $50 -53 as key support. Therefore, if this support is breached, it will be as if Litecoin has jumped into a bottomless pit as the only other viable support is around $22.

LTC/USD one-hour chart

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