Litecoin Market Update: LTC/USD retests $45 seller congestion zone, where to next?

Litecoin bulls have engaged higher gears in their quest to push the price above $50. From the highs traded in June around $50, LTC/USD embarked on an exercise of trimming gains to the extent of dropping under $40. Buying pressure above $39 put a stop to the losses in the last week of June with consolidation taking over in the first week of July.

The significant breakout took place on July 5 when Litecoin price stepped above the 50 SMA and the 200 SMA in the 2-hour range. Following a golden cross pattern formation, Litecoin continued with the gains above the hurdles at $43 and $44 respectively.

At the time of writing, LTC/US is trading at $44.39 after hitting a wall at $45. The RSI is currently retreating from the overbought, a situation that could lead to a break down back to $40. However, a glance at the MACD shows that Litecoin is likely to settle for consolidation ahead of the anticipated action towards $50.

On the downside, if a reversal comes into the picture, Litecoin would seek support at $43 (short buyer congestion zone). The 50-day SM at $42.62 will also provide support above the 200-day support at $42.36.

As long as the 50 SMA continues to increase the gap above the 200 SMA, there will be potential for gains towards $50. For now, holding above $44.00 and breaking past $45 should remain the bulls’ focus.

LTC/USD 2-hour chart