Litecoin price brings these two key levels to the ultimate test as volatility spikes in the crypto market

By John Isige
Published January 12, 2021 Updated January 12, 2021
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Litecoin price brings these two key levels to the ultimate test as volatility spikes in the crypto market

By John Isige
Published January 12, 2021 Updated January 12, 2021
  • Litecoin recently embraced support at $110 following the colossal breakdown from highs above $190.
  • On-chain metrics show that Litecoin is stuck between two key levels that are constantly being tested.

Litecoin has retested the support provided at $110 following a massive breakdown from price levels around $186. The drop in price occurred in tandem with Bitcoin’s price fall from $40,000 to $30,000. While recovery is underway, delays are anticipated as Litecoin encounters crucial levels.

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At the time of writing, LTC/USD is doddering at $135. On the downside, the 200 Simple Moving Average in the 4-hour timeframe has presented formidable support, keeping the bears in line, while avoiding a retest of the recent anchor at $110.

On the upside, the cryptocurrency is facing a challenging task at the 100 SMA. Trading above this first resistance would be a bullish signal that Litecoin can recover to higher levels around $160. The 50 SMA is might delay the recovery to towards $200 but if bulls are determined, Litecoin will swing to new yearly highs.

LTC/USD 4-hour chart

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Litecoin price chart
Litecoin price chart by Tradingview 

The technical support and resistance have been highlighted by the IOMAP model by IntoTheBlock. For instance, a high concentration of sellers is expected between $154 and $158. Here, nearly 36,300 addresses previously bought roughly 1.1 million LTC. If Litecoin slices through this area, the upswing to $200 might come into the picture.

Litecoin IOMAP model

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Litecoin IOMAP chart
Litecoin IOMAP chart

On the downside, Litecoin is sitting on areas of immense support, with the most robust running from $128 to $132. Here, roughly 40,000 addresses had previously bought approximately 1.7 million LTC. It is unlikely that this buyer congestion zone will be shattered in the near-term. However, if broken, Litecoin may fall to $110 or even revisit $100.

Litecoin intraday levels

Spot rate: $134

Relative change: -5.4

Percentage change: -4%

Trend: Bearish

Volatility: Expanding

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1106 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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