- LTC/USD needs to break above $50.00 for the upside movement to gain traction.
- Daily RSI implies that risks are tilted to the downside.
Litecoin (LTC) has been one of the biggest movers of the recent seven days. The fifth largest coin with the market value of nearly $3B has gained 7% to trade at $47.90 at the time of writing.
LTC/USD retraced from the recent high of $49.59 reached on Saturday, but the upside potential remains in place as long as the price stays above the congestion area $47.00-$46.85.
From the longer-term point of view, LTC/USD is supported by $44.50 (DMA200). A sustainable move below this level will put Litecoin bears in control with the next focus on psychological $40.00 and $39.14 (DMA50). A viable move lower will take us to the upside trend line coupled with DMA100 currently at $35.43.
On the upside, we need to see a confident breakthrough above psychological $50.00 and a sustainable movement towards February high at $53.94. This development will create favorable conditions for the extended recovery, while a move above $54.00 might attract new buyers to the market.
However, despite a favorable technical setup, Litecoin tends to move in sync with the rest of the market, which means that bulls’ plans may be dashed by general downside pressure. Moreover, the Relative Strength Index (RSI) on a daily chart has reversed to the North signaling that the near-term risks are tilted to the downside.
LTC/USD, 1D chart
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