• LTC/USD is recovering after a major slump on Thursday.
  • A strong resistance is created by the upper boundary of the precious consolidation channel at $47.00.

Litecoin (LTC) recovered from Thursday’s low at $42.12 and settled above $44.00 by press time; LTC/USD has gained 2.2% on Thursday, and lost over 4% of its value on a day-to-day basis, moving in sync with the market. Litecoin is the 7th largest digital asset with the current market value of $2.8 billion and an average daily trading volume of $2.6 billion.

Litecoin’s on-chain data

Only 20.9% of Litecoin addresses are making money at a current price. The next strong resistance is created by a cluster of 126k addresses in the range from $44.00 to $46.00. They hold over 4 million LTC and make it harder for the bulls to pass through. The number of large transactions (242) stayed mostly unchanged through the week, while their aggregate value amounted to $2.45 million.

LTC/USD: Technical picture

On the intraday chart, LTC/USD is testing the lower boundary of the broken channel at $44.30. Once it is out of the way, the recovery may gain traction with the next focus on $45.50 strengthened by 1-hour SMA100, daily SMA50 and 1-hour SMA50 located around this barrier. This local resistance, once broken, will open up the way to the upper line of the above-said channel at $47.00.

On the downside, the initial support is created by $44.00. However,  a sustainable move below this area will open up the way towards the stronger barrier at $43.00, which is reinforced with the lower line of the 1-hour Bollinger Band. 

The RSI on a daily chart has reversed to the upside signalling that an extended recovery may be under way. 

LTC/USD 1-hour chart

(Excerpt) Read more Here | 2020-06-12 01:24:00
Image credit: source

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