Pivot Point Retest at 171.54
During Friday's Asian trading session, the LTC/USD coin failed to stop its downward overnight rally. Even after the lower USD valuation, it drew some further offers around the $165.00 level, which positively impacted the LTC/USD pair. Meanwhile, the sell-off in the crypto market has played a major role in undermining the LTC/USD coin pair. However, the crypto market sentiment was depressed by the lack of investor confidence that ultimately pushed the LTC/USD prices lower.
The LTC price faced a severe price decline of around 5.62% when the market opened, and it currently trades at $168.06. The LTC/USD coin pair is trading in negative territory as the LTC drops below the 9-day and 21-day moving averages. After reaching the daily high of $180.36, the LTC coin price failed to break this level before being rejected.
The Litecoin price is trading near $168.861 with a 24-hour trading volume of $2,347,896,039. Litecoin dropped by 1.51% in the last twenty-four hours. However, the losses in the LTC/USD coin pair could be short-lived or temporary as the weaker US dollar positively impacts the LTC/USD pair. On the USD front, the broad-based US dollar failed to extend its overnight bullish moves. On Friday, it turned sour as investors awaited a highly-anticipated speech by Federal Reserve Chair Jerome Powell, due later in the day.
Conversely, the losses in the US dollar could be capped by the faster spread of the coronavirus. In the meantime, the latest chatters over six-month immunity from vaccines and the need for a third jab also help the US dollar limit its deeper losses. Moreover, the blast at Kabul airport and reports of two or three US officials being hurt raised worries about the US response to the Taliban. Thus, these worries were seen as one of the key factors that kept the lid on any additional losses in the US dollar. Anyhow, the prevalent declines in the US dollar failed to give any meaningful support to the LTC/USD coin pair, at least for now.
On the other hand, the reasons for the LTC coin's decline could be attributed to the bearish bias in the BTC coin. The BTC price failed to settle above $48,500 and corrected lower against the US Dollar. BTC is now facing many barriers between $47,500 and $48,000. BTC's price attempted to exceed the $49,000 resistance zone, but it failed to gain strength above the $49,000 level. A high was formed near $48,335 before the price started a fresh decline. Thus, the bearish bias in Bitcoin prices tends to have a negative impact on other cryptocurrencies, including the LTC coin.
LTC/USD Intraday Technical Levels
Pivot Point: 171.54
LTC/USD - Technical Outlook
On Friday, the LTC/USD pair was trading with a neutral bias at the 169 level. Litecoin's immediate support prevails at the 164.37 level, along with resistance at the 171.54 level. On the other hand, the breakout of the 164.95 level could expose the LTC price further lower towards the 156.56 and 148.17 areas. Conversely, the upward breakout of 171.54 levels exposes the LTC pair towards 178.13 and 186.52 levels.
The Stochastic indicator is holding in the buying zone, as the LTC/USD pair faces a hard time breaking below the 164 resistance level. On the hourly timeframe, the downward trendline has the potential to keep LTC below the 171.54 area. Below this, the selling bias dominates and vice versa.
All the best.
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