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Before surging 13%, Litecoin obtains the trifecta of supporting factors


coinnounce.com 22 November 2022 08:05, UTC
Reading time: ~2 m

Given the pessimistic outlook for the world, Litecoin price movement is expected to decline in search of support. Three supporting factors that are poised to take effect are helpful to LTC.

What should be expected

Be prepared for a slight decline before LTC soars back to $65,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. In a domino effect, this increased inflation expectations and placed pressure back on the supply chain, bringing On the selling list for the upcoming days are risky investments.

Litecoin price (1) is consequently being somewhat beaten down this morning by the general mood. LTC price set to experience a comeback higher. Even while that does not suggest many positives, there is a bright spot in that a triple supporting area is in operation. The $58 200-day SMA serves as the first significant support level.

Image source: Tradingview.com

What if it doesn't reach its target?

If LTC undershoots the 200-day SMA (2) around $57.12, which originates from the green ascending trend line that has had several tests for both support, LTC receives further support. If the rising trend line and the 200-day SMA are ineffective, the 55-day SMA is the final line of defense since it maintains the price action sustained at the finish.LTC has increased by 13% from the beginning of October and is presently trading around $56 before spinning up again toward $65 for a retest.

Expect to see bears breaking through this support level if the trifecta aspect fails to materialize and bearish pressures intensify. The danger would then manifest as a decline near the monthly pivot at $54 and result in around 13% of this week's losses. It is feasible that the trend would continue toward $50, but that would depend on another one-time occurrence, such as the rockets from the Russia-Ukraine conflict hitting Polish land last week.

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