- The eighth largest currency took off from the dangerous level of support.
- LTC / USD can extend recovery, once $ 32.00 is out, if the road.
Litecoin staged a good recovery on Tuesday and extended its gains at the start of Wednesday. The 8th largest digital asset with a market value of $ 1.9 and an average daily trading volume of $ 566M flirts with $ 32.00 at the time of writing. The currency gained 2.5% on a daily basis and almost 1% from the start of the Asian trading session on Wednesday.
While LTC is moving with the market, technical factors have supported the recovery and helped the currency maintain its previous gains.
Technical framework of Litecoin
From an intraday point of view, LTC / USD has exceeded the support of 31.50% created by SMA50 (4 hours). This development sets the stage for a prolonged recovery; however, the bulls must make sure that the psychological $ 32.0 is definitely out of the way. The next resistance is found with $ 32.70 (SMA200, 4 hours). It is followed by $ 33.00 and $ 33.40 (this barrier is created by a confluence of DMA20 and SMA100, 4 hours).
A higher sustainable move will take us to $ 35.50 – Fibo's 38% retracement offers downward movement from 6 November to $ 56.17.
On the downside, the strong level of support is created by DMA50 (currently at $ 30.74) and Fibo's retracement level of 23.6%. This area serves as a jump from the ground level to the coin, although if it is broken, the sell-off may start to cross the ball with the next bearish target at $ 27.80 (27 December minimum).
LTC / USD, 4-hour chart