Litecoin price analysis: LTC/USD bulls getting busy above $55.00 as prices broke above the short-term downtrend

• LTC/USD continues recovery from the recent lows, ready for a short-term trend reversal.
• The picture is positive as long as the coin stays above $55.00.

Litecoin, the 7th largest digital asset with market value $3.2B, is changing hands at $55.15, gaining 4.5% on a daily basis. The coin’s average daily trading volumes are set at $300M, which is in line with the longer-term average. Market players welcomed the news that Cryptocurrency security startup BitGo received regulatory approval for creating crypto custody service for major coins including Litecoin.

Litecoin’s technical picture

Looking technically, a sustainable break above $54.40 resistance, created by a sloping trendline from September 7 recovery peak, has improved the short-term picture and created a necessary technical impulse for a breakthrough above $55.00. Now the focus has shifted to $55.56, which is 38.2% Fibo retracement level for the downside movement from September high at $69.30. LTC/USD touched $55.71 during early Asian hours but failed to hold the ground.

On the downside, the first support is produced by $55.00. A sustainable movement lower will trigger more selling and push the price towards $54.10 (SMA200, 4-hour chart, and the above-mentioned trendline). SMA100 at $52.31 is followed by SMA50 and 23.6% Fibo retracement at $52.30.

LTC/USD, 4-hour chart