Litecoin price analysis: LTC/USD moves within upside channel, but 60.00 remains a hard nut to crack

• A psychological $60.00 handle caps LTC/USD recovery.
• The ultimate short-term support is created by $54.10.

Litecoin, the 7th largest digital asset with a market value of $3.44B, is changing hands at $58.90 with 4.2% loss on a day-to-day basis. The coin’s average daily trading volumes are set at $259M, which is in line with the longer-term average. Litecoin has retraced from Sunday’s high registered at $61.68, amid global correction on the cryptocurrency market after a strong bullish run led by XRP. LTC failed to above the next critical resistance at $59.38 (DMA50) and to $60.00, which proves that the bullish momentum is fading away 

Litecoin’s technical picture

As it is clearly visible on a 1-hour chart, Litecoin’s recovery is capped by a psychological $60.00, which is enhanced by SMA50 (1-hour). The bulls need to clear this hurdle before they get a chance to push the price towards the ultimate short-term goal of $64.00 created by the upper line of an upside channel. Once it is broken, the bullish trend is likely to gain traction with $69.40 (September 4 high) and $70.00 back in focus.

On the downside, the local resistance is created by $58.70 (SMA100, 1-hour) and $58.57 (DMA50). This area is likely to stop the speculative sell-off for the time being; however, a sustainable move below will take us to $56.60 (SMA200, 1-hour) and the critical support created by the lower line of the above-said channel currently at $54.10. 

LTC/USD, 1-hour chart