Litecoin Price Analysis: LTC recovery to $180 could be an uphill battle – Confluence Detector
|- Litecoin retest support at $150 following rejection from the yearly high at $181.
- On-chain data shows that recovery back to $180 will be challenging, especially with a high seller concentration at $170.
Litecoin was rejected from levels above $170 barely a day after hitting a new yearly high at $181. The retreat occurred alongside Bitcoin’s rejection at $40,000. The bearish leg extended to $150 after failing to find support at $160. LTC has already resumed the uptrend above $160, but gains to $170 and $180 may not come easy.
Litecoin struggles to nurture the uptrend
At the time of writing, Litecoin is trading at $161 and holding slightly above the ascending parallel channel’s middle boundary. The price must hover above this critical level to sustain the uptrend heading to $170.
However, a daily close under the middle boundary or even $160 will derail the recovery. Simultaneously, the bearish action could call for more sell orders, creating enough overhead pressure for losses back to $150.
The Moving Average Convergence Divergence emphasizes the pessimistic outlook. A bearish divergence from the MACD hints at an intensifying bearish grip.
LTC/USD 4-hour chart
The IOMAP model provided by IntoTheBlock, a leading on-chain analysis platform, reveals that Litecoin recovery is heading into an immense resistance zone running from $170 and $175. Here, roughly 40,500 addresses previously bought approximately 3.6 million LTC. Note that a break past this zone could also see LTC spike towards $200.
On the downside, medium-strong support has been highlighted between $155 and $160. Here, nearly 35,000 addresses had previously bought almost 2.4 million LTC. If the price stretches under this area, the bearish leg could explore levels under $145.
Litecoin IOMAP model
The confluence detector tool shows that robust support exists at $161. The buyer concentration zone has been highlighted by the 100 Simple Moving Average 1-hour and the daily 61.8% Fibonacci level.
LTC/USD confluence levels
This support must be guarded to avoid potential massive losses. On the upside, some delay is still expected at $162, as shown by the Bollinger Bands 4-hour middle curve. Another critical resistance level to keep in mind is $162.6, home to the 15-minutes previous high and the 1-hour previous high.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.