- Litecoin collapses from the intraday high to trade below SMA50 1-hour.
- The downside momentum may be extended towards $73.00.
Litecoin (LTC) fell victim to massive volatility in the cryptocurrency market. The 7th largest coin with the current market value of $5 billion hit a new high of 2020 at $84.50 and dropped like a stone to $77.25 in a matter of hours. At the time of writing, LTC/USD is changing hands at $78.33, down nearly 3% since the beginning of the day.
Currently, about 48% of all LTC addresses are in a green zone, though, bid and ask imbalance is skewed to the bearish side, which means the coin may be vulnerable to further losses.
LTC/USD: The short-term technical picture is gloomy
On the intraday charts, LTC/USD came close to strong local support created by SMA100 1-hour at $77.00. A layer of buy orders located around that level engineered a rebound; however, once it is broken, the sell-off may be extended towards $75.20 (SMA200 1-hour) and $73.00 (the upper boundary of the previous consolidation channel).
On the upside, a sustainable recovery above SMA50 1-hour on approach to $79.00 will allow for a stronger rebound towards psychological $80.00 followed by the recent high of $84.50.
The intraday RSI points downwards with no sighs of reversal as of yet.
LTC/USD 1-hour chart
Litecoin News Today – Litecoin LTC Price Bounces Back, Appears to be Pushing Higher
- Litecoin LTC gained 2% in the last 24 hours
- The coin’s price is now back above the $70 area
- The crypto found support at the $67.50 area
Litecoin news today – The price of Litecoin reportedly saw a minor 2% rebound as trade opened today after it had suffered a heavy decrease of 12% since this week began. The digital asset has finally managed to climb back above the $70 mark after it found support at the $67.50 position. The digital asset is the number 7 largest crypto by market cap and it currently holds a total market capitalization of $4.61 billion at press time.
Litecoin (LTC) Price Today – LTC / USD
Litecoin Price Prediction and Market Overview
Litecoin News Today – Since our previous Litecoin price prediction, the price of Litecoin has continued to find some level of support at the $67.50 area. This has prevented the digital asset market from dropping even lower. The crypto is now attempting a fresh rebound higher. LTC price managed to find some support at the lower side of the ascending channel that we have been following. This further adds to the level of support in that area. This support at $67 has held strong, thanks to LTC’s rising channel. This means that we can say that Litecoin is now within a bullish trend. The price of LTC must collapse under the $67 area before it turns neutral again. If the bulls continue pushing above the $71 area, then the first level of resistance will be expected to appear at the $76.72 region, as long as it is on the 382% Fib Retracement level. Apart from this, there is also resistance at the $80 and $83.05 level. If LTC buyers can cause a new 2020 high above the $83 area, then they will be able to see the resistances at $86, $89.28 and $95.55.
Additional Support for LTC/USD at $63.57
Additionally, if sellers push lower, then the first support level for LTC is expected to pop up at the lower boundary via the price channel. Under this area, is the $67.50 support. If sellers continue going lower, then they will find additional support lying at $63.57 and the 200-day EMA. RSI for LTC/USD has recently slipped under the 50 level, although the bulls are looking to take the market back up. For a bounce higher, traders and investors must wait for RSI to break above the 50 levels once more and show that the bulls have indeed taken back control of the market momentum. Litecoin’s key levels here include; Support areas at $67.50, $64.59, $61.33, and $60. Resistance areas at $76.72, $78.44, $80, $83, $86, $89.28, and $90 via the daily chart.
Litecoin’s consolidation between $73.84 – $76.60 may extend till February-end
According to CoinMarketCap, Litecoin is the best performing crypto-asset in the top 10 over the last 24-hours. The coin registered a positive spike of 3.84 percent as it was valued at $76.27. Its market cap remained under $5 billion, but its trading volume continued to be above $5.7 billion over the last 24-hours.
Litecoin’s 1-hour chart
Source: LTC/USD on TradingView
Litecoin’s short-term chart seems to have recovered over the past 48-hours after the massive drop on 19 February. A re-test of support levels at $67.42 took place on 20 February at 16:00 UTC, but since then, the price has ascended on the charts.
At press time, a rising wedge pattern was taking shape on the charts which had registered consistent higher highs at $72.76, $75.32, and $76.60, which is also a major active resistance at the moment. Lower highs were seen at $67.43, $71.48 and $74.51.
Although LTC has been on an incline, another bearish pullback remained on the cards for the coin.
According to the VPVR indicator, the Point of Control for Litecoin was lined up at $73.84. Following a bearish breakout, the price should re-test down to the PoC and then continue its march above $76.60.
The target zone for trading remains above $76.60 over the next week, but due to current bearish sentiments in the market, the price may consolidate for a longer period between $73.84 and $76.60 over the next few days.
However, major indicators remained bullish for Litecoin. The MACD line remained comfortably above the signal line at press time, which suggested that the momentum was on the bullish side. Relative Strength Index or RSI also continued to scale up, indicating a higher buying pressure.
Additionally, an anomaly was observed on the Litecoin chart on 22 February at 6:00 UTC when a huge bearish wick was observed. The price closed at $63.50 that hour, something that could have been triggered due to a higher sell order at some exchange. However, the wick did not affect the price and recovery continued over the next hour.
Although trading volume is fairly low between $73.84 and $76.60, the chances of consolidation remain high between the resistance and PoC. A bullish rally may change proceedings over the next week, but in light of the current market sentiment, the price will likely stay between the range.
Litecoin Price Analysis: LTC/USD bulls look to break above the SMA 20 curve
- LTC/USD bulls took control of the market for the second straight day.
- The 20-day Bollinger jaw has narrowed, indicating decreasing price volatility.
LTC/USD daily chart
LTC/USD bulls took control of the market for the second straight day as the price went up from $73.40 to $74.50 in the early hours of Saturday. The SMA 20 acts as immediate market resistance, which the bulls will need to conquer to continue the upward movement. After breaking past SMA 20, the bulls should aim to go past the $77 resistance level to get back into the $80-zone. Both the MACD and Elliott Oscillator shows that while the overall market sentiment is still bearish, the recent buyer action has definitely inhibited the downward momentum. The 20-day Bollinger jaw has narrowed, indicating decreasing price volatility.