- 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.
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.
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.
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