LTC/USD stares into the abyss; upside capped under $66

Fibo Quantum

  • Litecoin price smashed through the $70 support like an explosive device in the mines.  
  • Technical indicators: Recovery is possible but the resistance at $66 will be a hard nut to crack.

Litecoin dropped like a dead weight in the air after a bearish wave destabilized the majority of the top 100 cryptocurrencies. In tandem with Bitcoin which plunged under $9,500, Litecoin smashed through the $70 like an explosive device in the mines.  

Prior to the dropped, there was a sideways consolidation move above $70. Moreover, the price remained pivotal at both the 50 Simple Moving Average and the 100 SMA in the one-hour range. Similarly, upward movements had been capped under $76 leaving $70 vulnerable to declines.

At the moment $64 seems to be the most viable support in the short-term. Indicators show that recovery is possible but the resistance at $66 will be a hard nut to crack. The Relative Strength Index (RSI) hit extremely oversold levels. However, a recovery above 30 suggests that the trend has a bullish inclination. Besides, the Moving Average Convergence Divergence (MACD) has a minor positive divergence. This means that buying pressure is gradually creeping back into the market.

LTC/USD 1-hour chart