The cryptocurrency market is recovering gradually after the BTC downside move below $30K. BTC selling pressure directly affected Litecoin. Historical data indicated that both crypto assets tend to move in tandem through bullish and bearish cycles. LTC has been in a parabolic uptrend since the start of November and attained peaks of $174.50 on January 4. A downside correction subsequently ensued to lows of $140. Consolidation kickstarts on LTC/USD after attaining a $174.50 high. Despite the declines, LTC is still up by 18.39% on a weekly. LTC’s present market cap stands at $10.07 billion with a 24-hour trading volume of $10.3 billion. At the time of writing, LTC is exchanging hands at $157, significantly up from mid intraday lows of $146. Grayscale Investments, the world’s largest cryptocurrency asset manager, dumps XRP and buys more Litecoin. In a Tuesday announcement, the firm disclosed that it has liquidated its XRP holdings and used the remaining funds to buy up other cryptocurrencies, Litecoin (LTC) inclusive. Litecoin now accounts for 1.43% of the Digital Large Cap Fund.
*LTC has been in a parabolic uptrend since the start of November and attained peaks of $174.50
*At the time of writing, LTC is exchanging hands at $157
*Litecoin now accounts for 1.43% of the Digital Large Cap Fund
Resistance Levels: $215.00, $200.00, $175.00
Support Levels: $145.00, $120.00, $95.00
LTC/USD Daily Chart: Ranging
LTC/USD Daily Chart
Litecoin (LTC) broke out of a brief consolidation range and resumed the uptrend on January 1st. The Altcoin surged above the resistance at $160 and hit highs at $174.50 where profit-taking occurred. LTC has found stability around the $150 region where it consolidates presently. The rising moving averages and the RSI in positive territory suggest some advantages to the bulls.
If bulls can push the price above $175 resistance, the LTC/USD pair could rally to $185 and then $215. On the contrary, if the price rejects due to the minor resistance at $160, consolidation may persist for a few days. The first support level is at $140 and the second at $120. A break below the $122 support level may suggest that the bullish momentum has weakened. In this scenario, a breakdown to the MA 50 close at $98 is possible.
LTC/USD 4-Hour Chart: Ranging
LTC/USD 4-Hour Chart
LTC/USD has managed to regain balance around the $150 region after dipping to lows of $140 the prior day. If volatility returns, a break above $175 is key to the LTC uptrend. On the upside, the LTC bulls could face minor resistance at $160. Once these hurdles are cleared, LTC could resume a new rally with a target objective of $200.
On the flip side, if bears hijack LTC price, support is envisaged at $145 and $135 coinciding with the 4 -hour MA 50. If this fails, LTC could test the support at the MA 200 situated at $106. The LTC/USD pair is only bullish while trading above the $140 mark, key resistance is found at the $175 and the $200 levels.
Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
Image Credit: Shutterstock