The Litecoin price weathered the storm late last month, recovering from a critical support level which opens the door to a new big figure. Despite a barrage of negative press in September, Litecoin (LTC) buyers emerged at around $140, which indicates the floor price may be moving higher.
Litecoin went on a rollercoaster ride last month. LTC was flying at the start of September, reaching a four-month high of $232.64 by the 5th. However, the Evergrande collapse and China’s aggressive cryptocurrency ban drove the price 40% lower by the end of the month. Sentiment has improved dramatically since Thursday, when Jerome Powell eased fears of a US cryptocurrency ban, lifting Litecoin around 16% higher to $167. As a result, LTC has hurdled the 100-day moving average at $157.45 and is grappling with the 50-day average at $174.83. Furthermore, if the 50 day falls, all that sits in the way of $200 is the 200 DMA at $189.72.
The daily chart highlights a significant band of resistance at $140. The $140 was former resistance in June and now offers robust support. As long as the Litecoin price maintains $140, it should trade with a positive bias. However, until LTC climbs above the 200 DMA, it is vulnerable. If the price turns lower, the 100 DMA at $157.45 is the first support, followed by $140. If Litecoin falls below $140, the bullish outlook becomes invalid and flips to bearish, targeting the June $104 low.
Above the market, the 50 DMA at $174.83 is the first resistance line, followed by the 200 DMA at $189.72. If the Litecoin price closes above the 200 DMA, an extension to the September high of $237.88 looks probable.
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