The Litecoin price has recovered the 100-day moving average. However, the failure to break above $200.00 puts the future of the rally in doubt.
Outside of Bitcoin and Ethereum, the losses in altcoins from the highs were remarkably similar. LTC sat perfectly within the range and lost -70% from its $413.40 peak.
Again, the 80% rally in the Litecoin price is in line with many of its peers. And finally, like much of the market, LTC has failed to recover its uptrend and appears to be lacking further upside momentum.
Since Monday’s $114 low print, the price had been firmly in recovery mode. The rally that followed took the price back above the 100-Day moving average at $176.60.
This development encouraged the positive sentiment, and yesterday, LTC continued higher to $204.40. In today’s sessions, the price has been unable to build on those gains.
A high print of $203.20 was as good as it got, and the Litecoin price is currently -12% lower at $187.00.
The bounce may be encouraging, but remembering where we came from, it may also be just a knee-jerk reaction higher. In my opinion, until LTC can close above the 200-day moving average at $232.70, it is still vulnerable to the downside.
A previously supportive trend line further reinforces the resistance at the 200-Day MA at the same level.
The trend, from December 2020, was a good support level during this year’s bull run. Therefore the $232.00 area is an important one. If it can clear this area, I would consider the Litecoin price back in a bull market.
Below the market, LTC can find support at the 100-day average. A failure to hold this barrier would then open the door to lower prices. The logical target would be a return to Monday’s low.
Until LTC can convincingly break either of the parameters, the likely path is sideways and volatile.
Traders should look to Bitcoin and Ethereum for clues as to where the Litecoin price is heading next. The strong correlation tells us that where the big fish swim, the small fry follows.
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