Litecoin Technical Analysis: 20-day SMA keeps LTC above $80
Daily Litecoin LTC Price Analysis
- The 4-hour LTC chart has charted a death cross pattern.
- A break down to the 50-day SMA ($72) is expected if the price doesn’t break above the $82.50 barrier.
After reaching a local bottom of $69 on December 11, Litecoin managed to bounce up from the 50-day SMA. However, over the last four days, the price has failed at the $82.50 resistance barrier and dropped down. Let’s do a technical analysis to see how the price will behave in the near future.
20-day SMA holds firm
During LTC’s upward movement, the digital silver managed to flip the 20-day SMA from resistance to support. This was absolutely critical as the 20-day SMA has managed to hold firm and stopped the digital silver from going further down.
Image: LTC/USD daily chart
However, this level is bound to give way sooner than later if the $82.50 resistance continues to act as a barrier. If the 20-day SMA does break, the 50-day SMA at $72 is bound to get tested. Looking at the 4-hour chart. We can see that the price crashed below the upward trending line and the 20-bar SMA.
Image: LTC/USD 4-hour chart
Ironically, the 20-bar SMA in this timeframe is acting as a resistance, which is holding the price down. Worryingly, two signs show that further bearish action is expected. Firstly, the MACD shows increasing bearish momentum, and secondly, the 200-bar SMA has crossed above the 50-bar SMA to chart the highly bearish death cross pattern.
Key price levels to watch for Litecoin
If the $80 support breaks, the buyers will hope for either the 200-bar or 50 bar SMA ($78). Otherwise, a crash to the 50-day SMA ($72) is expected. A further break below could be catastrophic as it will see LTC plummet to the 200-day SMA ($55).