- LTC/USD has recovered above the intraday low, but the upside is slow.
- A sustainable move above $100.00 is needed to stimulate further recovery.
Litecoin bottomed out at $84.85 and managed to recover towards $87.70 by the time of writing. However, the fourth largest digital asset with the current market capitalization of
$5.5 billion is still down nearly 13% on a day-on-day basis and -2.2% since the beginning of the day. LTC/USD is locked within the short-term bearish trend amid growing volatility, moving in sync with the rest of the market.
It is worth noting that the move is mostly technical-driven as there are no fundamental triggers that might have explained the recent sell-off.
Litecoin’s technical picture
Litecoin bears managed to push the price well below a critical $100.00 handle. This development has darkened the technical picture and pushed the price towards the lowest level since May 23.
Basically, LTC/USD bears stopped short of the next critical support $84.65, created by 50% Fibo retracement for the year-long upside move from $26.72 low. Once it is taken out, the sell-off is likely to gain traction with the next focus on psychological $80.00 and $74.00 – Simple Moving Average (SMA200) on a 1-day chart.
On the upside, a sustainable recovery above $100.00 is needed to mitigate immediate bearish pressure. This psychological barrier is strengthened by 38.2% Fibo retracement for the above-said move and SMA100 1-hour. Once it is cleared, we may be in for an extended recovery with the next focus on $102.00 (SMA100, daily located on approach) and $108.53 (SMA50 4-hour).