Litecoin (LTC) – In a recovery mode eying 83.37Posted on Tuesday, May 17 2022 at 9:23 pm GMT+0000
Litecoin (LTC) has been in recovery mode over the last few days, slowly erasing a part of the slump to a fresh 18-month low of 52.00 hit on Thursday.
The oscillators are displaying a picture where the negative momentum is softening, with the ROC stepping over its moving average in the bearish territory and the RSI sloping upwards again after deflecting off the 30 oversold threshold, both reflecting the growing buying pressures.
So, the base case is for the price to stretch the current rebound, with buyers most likely eying the 38.2% Fibonacci retracement level of the March up-leg at 83.37. By overrunning that key barrier and the neighboring 20-day simple moving average seen around 86.11, they will march towards the February 24th inside swing low of 91.52 and to the adjacent 50% Fibonacci retracement level at 93.06 intersecting with the descending trendline stretched from the March 30th peak. Further higher, the spotlight will turn to the 50-day simple moving average around 102.30.
Nevertheless, as the price is traveling well below the negatively aligned 20-and 50-day simple moving averages and the descending trendline, the downside risks persist. So, should buying pressures start to wane, the price will slip back towards the recent low of 52.00, while falling lower, the September 2020 bottom of 41.64 could be the next target for the bears.
Overall, Litecoin has been exhibiting some signs of recovery, outperforming most of its counterparts, and seems currently targeting the 83.37 resistance.