VOT Research Desk
As it did earlier this week at the ASIA PAC opening session, the price of Litecoin (LTC) decreased by 3.5% intraday during the European trading session.
As China was forced to disclose lockdowns once more in some residential areas, risk-off sentiment began to emerge in the markets. To stop covid contamination, a five-day lockout seems to be standard.
As a result, the supply chain was once again under stress, inflation expectations increased, and risky assets were placed on the selling list for the ensuing days.
As a result, this morning’s market sentiment has taken a little hit on the price of litecoin.
Even while that does not suggest many positives, there is a bright spot in that a triple supportive area is in operation. The 200-day Simple provides the highest level of support. If LTC undershoots the 200-day SMA near $57.12, which originates from the green ascending trend line that has had numerous tests for both support, LTC receives additional support.
The 55-day SMA, which came in at $56 before spinning LTC up again into $65 for a retest with 13% of gains in the books, is the last act of support if neither the 200-day SMA nor the ascending trend line can hold the price action.
Expect to see bears breaking through this support level if the trifecta aspect fails to materialise and bearish pressures intensify. When the danger materialised, there would be a slide near the monthly pivot at $54 and around 13% of losses would result.
It is feasible that the trend would continue toward $50, but that would depend on another one-time occurrence, such as the missiles from the Russia-Ukraine conflict hitting Polish soil last week.
