LTC/USD descending channel limits recovery

  • Litecoin must brace for acute selling activity at $48 and $50 supply zones.
  • Litecoin technical picture suggests that sideways trading is likely to be the prevailing trend in the next session.

The cryptocurrency market is turning red once again on Tuesday. The price action has been mostly drab with little progress on the upside. Litecoin is trading lower a subtle 0.15% on the day. The crypto correction to highs of $46.26 after opening the session at $45.63. The loss of momentum has seen the price adjust to the current market value at $45.57.

The failure to break the resistance at $50 on Friday last week, has seen Litecoin confined within a descending channel. The channel has been tested numerously on both sides but both the support and resistance remain intact.

The zone at $45 is coming out as a credible support, allowing a shallow recovery. Immediate resistance is at $46. Further correction north will have to deal with the buyer congestion at $48 and $50 levels respectively.

The RSI at 46 has started to range, which is a signal for sideways trading action. The uniform gap between the 50 SMA and the 100 SMA on the 1-hour chart out emphasis on the sideways trading too.

LTC/USD 1-hour chart

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