Litecoin Price Analysis: LTC/USD fails to settle above $40.00
- LTC/USD has settled below $40.00 after a strong recovery.
- The short-term technical picture is neutral at this stage.
Litecoin (LTC), the sixth-largest digital asset with the current market capitalization of $2.5 billion, has touched the ground above $41.00 during early Asian hours amid strong recovery on the cryptocurrency market. However, the growth proved to be unsustainable as LTC/USD has returned to $39.65 by the time of writing. Then coin has lost about 3% of its value since the beginning of the day, though it is still in the green zone in recent 24 hours.
Litecoin's technical picture
On the intraday chart, LTC/USD has returned to the area below the middle line of 1-hour Bollinger Band (currently at $39.80). We will need to see a sustainable move above this barrier, followed by a psychological $40.00 for the recovery to gain traction. This move will improve the short-term technical picture and allow for an extended growth towards the intraday high of $41.69. The next resistance awaits us on approach to $42.30 ( SMA200 (Simple Moving Average) 1-hour and the lower boundary of the previous consolidation range).
On the downside, the initial support is created by SMA50 1-hour at $38.80. Once it is broken, the sell-off may continue towards $36.00 (the intraday low is registered at $35.98).
From the longer-term point of view, the first bulls' target awaits us on approach to $44.00 (the middle line of 4-hour Bollinger Band). Once it is out of the way, the upside is likely to gain traction with the next focus on psychological $50.00 and $51.00 (SMA50 daily).
LTC/USD daily chart
Author
Tanya Abrosimova
Independent Analyst
