- Litecoin falls into consolidation after recovery from $42 support hit a wall at $45.
- LTC/USD immediate upside limited by the 50 SMA at $44.66; its technical picture supports sideways price action.
Litecoin (LTC) managed to contain losses above $42 amid the widespread declines in the cryptocurrency market. Recovery occurred almost immediately but the bulls did have enough power to clear the resistance in the range between $45 and $45.50. LTC/USD has adjusted lower to $44.49. It is enjoying the protection of an ascending trendline on the downside in addition to the initial support at $44.
Marginally above the current price is the 50 SMA on the one-hour chart. Sideway trading is expected to continue being the highlight of the weekend according to the RSI, currently at 47. Advance above 50 would call more buyers to join the market. Gains above the key resistance at $45-$45.50 would be key to sustaining correction targeting $50.
The same sideways trading is supported by the MACD. Besides, the consolidation traders should be aware of the minor bearish divergence from the MACD. Therefore, attention should also be channeled towards holding the price above $42. Glancing lower, other support areas include $40 and $35.
LTC/USD 1-hour chart
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