Litecoin is the best performing crypto currency of the day
The crypto currency market had a mixed picture during the Asian session today. Although the bearish sentiment seems to remain dominant as Bitcoin and most of the major Altcoins are in a red zone.
Capitalization of the crypto market remained at $ 253 billion, almost unchanged from $ 254 billion on Tuesday. The average daily volume of trade fell to $ 58 billion amid growing volatility on the market.
BTC/USD is trying to recover over $ 8,000, although the breakthrough needs to be confirmed. At the time of my writing, BTC/USD is traded around $ 7930 against a backdrop of rising volatility. LTC/USD took advantage of Bitcoin jumps to $ 8100 and set its course while breaking key barriers.
Litecoin (LTC) is still the biggest winner of the day. The fifth largest coin with the current market capitalization of $ 8.5 billion rose by more than 7% in the last 24 hours to trade at a price of $ 139.27.
Litecoin opposes gravity ahead of halving
Fundamentally, the sustainable growth of Litecoin is driven by upcoming halving. This event will reduce the reward of miners, which they will receive in exchange for maintaining network operability.
Project Leader and Creator Charley Lee has published some statistics to show the community that mining will continue to be profitable even after halting.
Meanwhile, the technical picture is positive and will probably remain the same if something drastic does not happen. The RSI indicator moves around $ 72.00 to indicate that the price path of least resistance is upside. This trend is also accentuated by MACD, which sits comfortably above the average line just at +2.5638.
For the upcoming day, a break above $ 141 would support the upward momentum. Keep in mind, however, that if failure to break this resistance, LTC/USD may return some of the morning’s gains. It is quite possible to see a slight downside correction because the pair is already in overbought territory.
Litecoin will need constant support from the broader market to reach levels around $ 145. Barring an expanded crypto rally, the first major resistance is likely to limit the potential upside momentum for the day.
On downside, immediate support is created by merging the SMA 50 and SMA 100 on 4-hour chart in the area of $ 114.85 – 114.00. Once broken, the likelihood of a decrease will increase. And the next goal of the bears will be the $ 110.00 zone.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.