LTC/USD is positioned for a recovery after a massive sell-off

Fibo Quantum

  • Litecoin has lost nearly 30% moving in sync with the market.
  • LTC/USD is poised for a technical recovery towards at least $34.00.

Litecoin, now the third-largest digital asset with the current market value of $2 billion, has lost nearly 30% of its value in the recent 24 hours moving in sync with the market. LTC/USD hit the intraday low at $25.00, which is the lowest level since December 2018. At the time of writing, LTC/USD is changing hands at $31.50. 

Notably, Litecoin’s average daily transactions jumped above $7 billion, which is more than three times its market capitalization. 

LTC/USD: Technical picture

On the long-term charts, LTC/USD shows some signals of an upcoming reversal. Weekly RSI still points downwards, however, it is already close to the overbought territory. Meanwhile, daily RSI has reversed to the North. Also, the LTC still stays outside the Bollinger Band, which is also a bullish signal as price tends to return to the average. Thus, the initial bullish target is located at $34.16, this is the lower line of the daily Bollinger Band. Once it is out of the way, the recovery may be extended towards psychological $40.00. 

LTC/USD daily chart

On the intraday charts, LTC bulls may face resistance on approach to $33.00. This area is reinforced by the middle line of 1-hour Bollinger Band. However, a stronger hurdle comes at $36.00 as this level stopped the recovery after the first collapse on Thursday. We will need to see a sustainable move above this line for the upside to gain traction towards the above-mentioned psychological $40.0 and 41.00 with SMA50 1-hour located above this area.

LTC/USD 1-hour