Litecoin Price Analysis: LTC/USD explores support area on approach to $43.00

LTC/USD has been selling-off on Wednesday in sync with the market.
The critical support is created on approach to $43.00.

Tanya Abrosimova Independent Analyst

Litecoin (LTC) dropped from the intraday high of $44.60 and tested $43.16 amid sharp sell-off across the board. At the time of writing, LTC/USD is changing hands at $43.39, down nearly 2% since the start of the day. Litecoin is the seventh largest digital asset with the current market value of $2.8 billion and an average daily trading volume of $1.39 billion.

LTC/USD: Technical picture

On the intraday charts, LTC/USD is trading below the lower boundary of the Bollinger Band as the bearish has subsided. The RSI on 1-hour chart starts reversing to the upside from the oversold territory, which means the coin may proceed with the correction. However, the initial resistance is created by a combination of 1-hour SMA100 and SMA200 at $43.70. Once it is cleared, SMA50 at $44.00 will come into focus. This area served as a strong support and now has a potential to slow down the recovery. If it is broken, LTC/USD will get a chance to retest $45.00. On the downside, a sustainable move below $43.00 will worsen the technical picture and bring June 20 low of $42.20 into focus.

LTC/USD 1-hour chart

On the daily chart, LTC/USD is moving between SMA100 located on approach to the above-mentioned support of $43.30 and the daily SMA50 at $44.60. On the downside, the next support lines come at $41.50 and psychological $40.00. The later barrier is reinforced by May 11 low at $39.50.

On the upside, the above-mentioned SMA50 is reinforced by the middle line of the Bollinger Band. A sustainable move above this area will open up the way to $50.00 with daily SMA200 located on approach. This MA stopped the recovery earlier this month.