- LTC/USD recovery is under threat due to the move below $120.00.
- The strong support is created by 23.6% Fibo retracement.
Litecoin is back below $120 handle amid a global sell-off among altcoins. The fourth largest digital asset with the current market capitalization of $7.4 billion has lost about 3.7% of its value on a day-on-day basis and stayed unchanged since the beginning of the day. Litecoin’s average daily trading volumes are registered at $3.8 billion.
Litecoin’s technical picture
Looking technically, a sustainable move below $120.00 handle bodes ill for Litecoin bulls. If they failed to push the price back above this barrier, the downside pressure is likely to increase. The initial support is created by $117.00 (23.6% Fibo retracement for the large upside move from $26.72 low) that has served as a stop line for the short-term sellers recently. Once it is out of the way, the sell-off is likely to gain traction with the next focus on $110.00 with June 27 low located right under this handle.
On the upside, the recovery is capped by $120.00. Once it is cleared, the upside is likely to gain traction with the next focus on $123.70. This barrier is created by SMA100 (Simple Moving Average) on 4-hour chart. A sustainable move above this resistance will open up the way towards the next bullish aim of $127.50 (SMA200 4-hour) followed by psychological $130.00.