- LTC/USD has extended the decline below $90.00 handle.
- The initial support is created by $80.00 level.
Litecoin (LTC) dropped below $90.00 handle and touched an intraday low at $86.74. The fourth-largest digital asset with the current market capitalization of $5.5 billion managed to recover towards $88.30 by the time of writing; however, it is still trading down 6% on a day-on-day basis and down 2% since the beginning of Wednesday.
Litecoin’s technical picture
On the intraday charts, LTC/USD is initially supported by $88.00. However, this barrier won’t stop the bears for long. The next support is created by the recent lo of $86.70. Once it is out of the way, the downside is likely to gain traction with the next focus on psychological $80.00 followed by $76.46 (the lowest level of July 16 with SMA20 (Simple Moving Average)daily located on approach). Once below, the sell-off may be extended towards 61.8% Fibo retracement at $70.00.
On the upside, we will need to see a sustainable move above $93.50 handle for the upside to gain traction. The above-said resistance is created by a confluence of SMA50 and SMA200 on the 1-hour chart. Once it is cleared, the recovery may be extended towards the ultimate resistance at $100.00. The next resistance awaits at $102.80 (SMA100, daily) and $105.95 (recovery high reached on July 20). The next strong barrier created by $117.5 (23.6% Fibo retracements).