Litecoin Price Analysis: LTC Finds Support On The 20-day SMA
Daily Litecoin LTC Price Forecast
- Litecoin faces critical resistance at $155.
- The number of daily new addresses has decreased considerably over the last two days.
Prior to this Wednesday, Litecoin had three consecutive bearish days. During this period, LTC fell from $180 to $135, losing $45 in its overall valuation and dropping below the 20-day SMA. The bulls managed to take back control.
LTC Breaks Back Above The 20-day SMA
This Monday, the price of Litecoin jumped up to $148, breaking back above the 20-day SMA. This was pretty critical for the buyers as they successfully gained back a healthy support level. For now, the price faces a key resistance barrier at $155. The relative strength index (RSI) is trending around the neutral zone, which means that either the buyers or the sellers have the freedom to take control of the overall market.
Image: LTC/USD daily chart
As per IntoTheBlock, the $155 zone is a moderate resistance barrier, wherein previously 35,500 addresses had purchased 1.22 million tokens. If the buyers take back control, they should be able to reach the $180 psychological level.
The 4-hour chart shows us that we shouldn’t expect any of these wild price movements any time soon. The Bollinger band has constricted by a large amount, which is indicative of this low volatility.
Image: LTC/USD 4-hour chart
Litecoin Network Weakens
As per IntoTheBlock, the Litecoin network has been weakening considerably over the last two days. After reaching a high of 88,220 addresses, the number has since plummeted to 68,000.
Image: Daily Active Addresses
With lesser new addresses entering the network everyday, it seems like the overall system is weakening.
Litecoin Price is Expected To Hit These Levels
If LTC bears take control, the price of Litecoin could drop to the $138 support barrier, wherein 71,600 addresses had purchased 3.8 million LTC tokens. This level coincides with the 20-bar SMA (4-hour chart). If the buyers retake control, the price of Litecoin should reach the $155 resistance barrier. Breaking past that level takes the price of LTC to the $180 psychological level.