The cryptocurrency market is a sea of red as Bitcoin and the majority of Altcoins suffered significant losses in the day. Litecoin (LTC) is holding in downside consolidation after testing lows of $165 in Friday’s market declines. At the time of writing, Litecoin was trading at $184, down by 11.56% in the last 24 hours and 1.32% weekly. Ranking 14th largest, Litecoin’s market capitalization stands at $11.74 billion and $4.5 billion in traded volume over 24 hours. Venmo, a subsidiary of Paypal (which also has Litecoin support on its platform) and the second-ranked most popular financial app in the US has launched its much-awaited cryptocurrency offering marking yet another milestone for Litecoin’s adoption. Asides from Litecoin, Venmo’s 52M+ users will also have access to buy, sell and store Bitcoin, Ethereum, and Bitcoin Cash directly. Paypal also recently announced that it will permit its users to transfer Litecoin to third-party wallets.
Key Levels
Resistance Levels: $400, $370, $350
Support Levels: $300, $270, $240
LTC/USD Daily ChartLitecoin eased on Friday but so far remains within the range of the past four days between $165 and $208. The RSI remains in the bearish territory, slightly above the threshold of 30, hinting that the next move in prices could be on the downside rather than on the upside. Should the market extend losses and LTC/USD price plummets below the consolidation area, this could drive the pair lower towards the $139 handle ahead of the $117 level identified by the low on May 23.
LTC seems to be presently battling support at the MA 200 ($177). Conversely, an upside correction could push the LTC/USD pair until the $232 level first and then the MA 50 at $266. However, Steeper advances could move Litecoin north towards the $308 and $413 yearly high, fully reversing this and last week’s correction.
Litecoin started a downside correction from the $413 yearly high on May 10. The LTC/USD pair broke the support zone of the moving averages 50 and 200 to move into a bearish zone. A low was formed at $117 before recovery was initiated. A further advance was stalled near the MA 50 barrier at $181 where the price is consolidating around presently.
The LTC/USD pair may spend more time in consolidation before establishing in fresh direction on a break of either side. A firm break above MA 50 would open the way for further recovery and expose key barriers at $232, the MA 200 ($272), $360, and the yearly highs at $413. Conversely, the LTC/USD pair might further its decline below the MA 50 at $181. Initial support on the downside remains near the $165 level. Any more losses might lead the pair towards the main $117 support level.
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