- LTC/USD recovers from the recent lows; bearish pressure remains strong.
- A sustainable recovery above $123.50 will negate the immediate downside momentum.
Litecoin resumed the decline and hit the intraday low of $112.25 amid growing bearish sentiments across the board. At the time of writing, LTC/USD is changing hands at $115.20, down 7.5% since this time on Monday and over 6% since the beginning of the day. Litecoin’s market capitalization slumped to $7.1 billion, while an average daily trading volume is registered at $4.9 billion, in line with the long-term figures.
Looking technically, Litecoin bulls are in a desperate situation as they need to push the price at least above $120.00 to mitigate the immediate bearish pressure. Even stronger resistance awaits them on approach to $123.50 level. It is created by a confluence of strong technical indicators, including SMA50 (Simple Moving Average) and SMA100 on 1-hour chart. Once it is out of the way, the recovery may be extended towards $125.00 (SMA200, 4-hour) and $127.00 strengthened by SMA50 4-hour.
On the downside, the initial support is created by $112.25 (the recent low) barrier, followed by $110.00. A sustainable move below this handle will open up the way towards the next bearish aim of $100.00 and $97.57 (June 4 low).