- Litecoin is poised for sideways trading in the sessions heading into the weekend.
- To avert the bear pressure, LTC/USD must first defend $128 support and push past $130.
Litecoin was given a strong buy signal by one of the leading analysts associated with Fundstrat’s, Tom Lee research firm. The analyst said that with Litecoin breaking above $125 critical resistance, it had launched itself towards a bull rally that was going to break $150.
LTC/USD 1-hour chart
Meanwhile, a look at the chart on Friday shows an opposite correction for the fifth largest cryptocurrency by market capitalization. Litecoin is trading at $129 at press time following a correction from $144 high achieved yesterday.
By failing to find support above $140, LTC/USD opened the Pandora box as bears took advantage of sending Litecoin below a couple of more support levels at $132 and $130. However, the previous resistance level at $128 stood its ground preventing the price from tanking further.
At press time, Litecoin is trading at $129.31 and after correcting lower 1.13% on the day. The price dipped below both the 50 Simple Moving Average (SMA) and the 100 SMA. Losses extended below the trendline support further demoralizing the bulls.
Technically, Litecoin is poised for sideways trading in the sessions heading towards the weekend. The Relative Strength Index (RSI) slopping slightly under the overage means that the trend has a bearish bias. The reducing gap between the moving averages could lead to the 50 SMA crossing below the 100 SMA which will be another indicator for a bearish momentum.
Therefore, Litecoin bulls must first defend $128 support and push for a reversal above $130 in the near term in order to avert the bear pressure that continues to hover around it. Other key support levels to look out for are $125, $120 and $100.
Litecoin key Technical Indicators
50 SMA: $134.46 – A cross under the 100 SMA will be a bearish signal.
100 SMA: $131.58 – Price crossing above this level is a bullish signal.
RSI: The ranging at $35 points towards consolidation.