- LTC/USD resumed the downside amid global correction on the cryptocurrency market
- The RSI implies more losses within the next hours.
Litecoin has gained over 5% in recent 24 hours, trading marginally below $34 at the time of writing. The 7th largest digital coin with market value $2B recovered from the multi-month lows in sync with other altcoins; however, the momentum may be fading away. LTC/USD failed to settle above $36.00 and lost 2% of its value since the beginning of Thursday.
On the intraday charts, LTC/USD is capped by congestion zone $35.00-$35.60 that stopped the recovery on November 20, creating a strong barrier for short-term Litecoin bulls. Once it is cleared, the upside may be extended towards $36.29 (Wednesday’s high) and to DMA5 (now at $37.54).
The Relative Strength Index (RSI) and momentum indicators are starting to reverse downwards, signaling that the price may continue sliding within the nest trading hours. The local support is created by SMA50 (1-hour) right under $32.00, followed by SMA200 at $31.75. Once below, the sell-off will gain traction with the next aim at critical $30.00 This area is likely to attract speculative buyers, though if it is broken, the price will extend the sell-off towards to $25.00, the lowest level since June 2017.
LTC/USD, 1-hour chart
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