- LTC/USD has recovered above the critical $120.00, but the upside may be limited.
- A sustainable move above $123.50 is needed to stimulate the further recovery.
Litecoin broke above critical $120.00 ahead of the European opening and hit the intraday high of $127.20 before retreating to $123.50. The fourth largest digital asset switched from a loser to a growth leader, gaining 1.5% since the beginning of the day. A move above $120.00 handle has improved the short-term technical picture; if it proves to be sustainable, Litecoin’s recovery will gain traction.
Litecoin’s technical picture
Litecoin bulls finally managed to push the price above $120.00 that limited the recovery during the recent days. However, it is still too early to uncork champaign and celebrate the victory, as there is another strong barrier created by SMA50 (Simple Moving Average) on 4-hour chart and SMA200 on a 1-hour chart on approach to $123.50. It separates us from all the more important psychological $130.00 with SMA100 4-hour located on approach.
On the downside, the initial support is created by the recently broken $120.00, followed by $118.00 (SMA50, daily) and $113.50 (the short-term upside trendline). Once it is broken, the sell-off is likely to gain traction with the next focus on the recent low of $112.25. A sustainable move below this signal that the bears are behind the driving wheel and ready to push the price towards the next bearish aim of $110.00 followed by critical $100.00.
LTC/USD, 4-hour chart
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