LTC/USD bulls lie in wait on approach to $45.00

Fibo Quantum

  • Litecoin is locked in a narrow range after wild movements.
  • The critical support is created by a combination of SMAs on a daily chart.

Litecoin (LTC) has been trading in a tight range since the start of the day, consolidation large moves of the previous days. LTC/USD hit the low of $44.52 on Tuesday amid major sell-off on the cryptocurrency market and managed to recover to $46.20 by the time of writing. The coin has lost over 5% in the recent 24 hours and stayed unchanged since the beginning of Wednesday.

Litecoin is the seventh-largest digital asset with the current market value of $3 billion, while the average daily trading volume is registered at $2.9 billion. 

LTC/USD: Technical picture

On the intraday chart, LTC/USD movements are limited by an upward-looking range created by 1-hour SMA200 ($45.20) on the downside and 1-hour SMA100 ($46.60) on the upside. Considering an upward-looking RSI, the price may continue its slow recovery towards the upper limit of the above-mentioned range, which is also reinforced by the middle line of the 4-hour Bollinger Band. Once it is out of the way, the upside is likely to gain traction with the next focus on $49.00 (the upper line of the 4-hour Bollinger Band) followed by the recent high at $49.60. The ultimate bullish goal is $50.00.

LTC/USD 1-hour chart

The initial support is created at $45.20 (1-hour SMA200 and 4-hour SMA50). A cluster of daily SMA50, SMA100 located below $045.00 area makes it a hard nut to crack for the LTC bears and serve as a trigger for another bullish wave. However, a sustainable move below this area will increase the downside pressure and open up the way towards $44.64 (4-hour SMA100) and $44.00. 

LTC/USD daily chart