On June 12, we noted that Litecoin (LTC/USD) was testing a shaky support around $100. We warned that it was probably not going to hold.
We also projected downside to the $70-$75 area, with the most aggressive projection to $60. So far the first support area held and LTC/USD is making at least a short-term recovery.
LTC/USD 4H (Coinbase)
Short-term Price bottom:
- In the 4H chart, we can see that price essentially consolidated and is now rallying from this bottom, maybe double bottom.
- But we can see that as price approaches $100, it will be attacking the center of the previous consolidation around $100. Price would also be challenged by the 200-period simple moving average (SMA) in the 4H chart.
- Price would also be challenged by earlier support/resistance pivot area that we can see more clearly on the daily chart.
- This whole $100-$110 area should be seen as a resistance zone.
- It is too early to call a bullish recovery, other than for the short-term.
- If price starts to anchor above $80, and $90, then we should have more confidence for the recovery. But even in this scenario, I would limit he bullish outlook to $140, which is more than 70% above the current price around $85. But price fell from $180 in May to about $72 in June, so the is within reason.
LTC/USD Daily Chart (Coinbase)