Litecoin Technical Analysis: LTC Has A Robust Support Barrier On The Downside
Daily Litecoin LTC Price Analysis
- Litecoin price is currently negotiating with strong resistance at the 20-day SMA.
- A strong support barrier lies between $140 and $150.
Following a $45 drop between January 10 and January 12, the Litecoin price has been on a steady upswing. The price has managed to break past the $150 psychological level over the last 4 days.
LTC Negotiates With 20-day SMA
While Litecoin has been on a bullish uptrend since January 12, it has currently encountered resistance at the 20-day SMA ($155). If the buyers manage to flip this level from resistance to support, the Litecoin price will gain a healthy cushion, from which they can jump back into the $175 psychological zone.
Image: LTC/USD daily
IntoTheBlock’s IOMAP tells us that following the 20-day SMA, another moderate-to-strong resistance barrier lies at $175. Conquering these two zones should give them enough firepower to break into the $200 zone.
Are The Bears Going To Spoil The Party?
The 4-hour chart has some worrying signs, at least in the short-term. Firstly, the MACD shows that the overall market momentum is about to reverse from green to red. Secondly, the parabolic SAR has changed from bullish to bearish, which shows that the short-term sentiment is negative.
Image: LTC/USD 4-hour
Thankfully, the support barrier between $140 and $150 is healthy enough to absorb a lot of selling pressure.
Number Of Addresses Increasing
The number of new addresses joining the Litecoin protocol jumped from 65,600 to 80,860 over the last 24 hours. This is a positive sign as it shows that the overall network is strengthening.
Litecoin Price Is Expected To Reach These Levels
If the buyers manage to flip the 20-day SMA from resistance to support, they have the freedom to take Litecoin price to $175. If they fail to cross above the 20-day SMA, the price will likely drop to $150, where a strong support barrier will prevent further drops.