Litecoin price analysis: LTC/USD slips below 38.2% Fibo as Gemini induced recovery falters

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  • LTC/USD’s bulls are losing their enthusiasm.
  • The price needs to stay above $55.00 handle.

Litecoin, the 7th largest digital asset with market value $3.3B, is changing hands at $55.70, down 0.46% on a daily basis. The coin’s average daily trading volumes are set at $256M, which corresponds to the longer-term average. LTC movements are dominated by broader cryptocurrency market sentiments amid lack of Litecoin specific fundamentals.

Litecoin’s technical picture

Looking technically, a sustainable break below $55.56 support, created by 38.2% Fibo retracement level for the downside movement from September high at $69.30, may push the price towards psychologically important $55.00 and $54.40 (SMA200, 1-hour). That’s where fresh buying interest may appear.

On the upside, the first resistance is seen at $56,00, followed by SMA50 (1-hour chart) at $56.79. Once this area is cleared, the recovery may be extended towards ultimate short-term goal at $60.00.

Fundamentally, Gemini announcement of upcoming  Litecoin support boosted LTC prices, but the market reaction proved to be short-lived. The news was revealed during Litecoin Summit by Eric Winer, the exchange’s Vice President of Engineering, on September 14.

“We are working on adding Litecoin… we are pleased to announce Gemini will be launching Litecoin support starting October 13th, 2018!”

LTC/USD, 1-hour chart

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