- Litecoin has been oscillating in a channel since the end of September.
- A strong resistance is created on approach to $66.50.
Litecoin has been moving inside a horizontal channel since September 24. The sixth-largest digital asset with the current market value of $3.5 billion has lost over 2% in recent 24 hours to trade at $54.59 at the time of writing. From the short-term perspective, LTC/USD is moving with bullish bias amid shrinking volatility. An average daily trading volume stays well above $2 billion.
LTC/USD, the technical picture
LTC/USD has been confined to a tight range since September 24. The upper boundary of the channel is located on the approach to $58.00 and strengthened by the middle line of four-hour Bollinger Band. We will need to see a sustainable move above this handle for the upside to gain traction with the next aim at $60.00. Once it is out of the way, $65.00 will come into focus. This resistance is created by SMA200 (Simple Moving Average) on the four-hour chart. Another barrier is created by a combination of SMA50 daily and the sloping trend line from June 23 high at $66.50.
On the downside, it is advisable to keep an eye at $53.00 followed by the lower boundary of the above-said channel at $52.80. Litecoin bears made several attempts to engineer a sustainable move below this handle; however, fresh buying interest helped to trigger a recovery. Once it is broken, the sell-off is likely to gain traction with the next focus on $50.39 (September 26 low) and psychological $50.00.