Litecoin (LTCUSD) plunged below a critical support level but has been able to stage a recovery this Monday as bulls seem to have found the assets cheap enough to buy at present levels. The present cryptocurrency meltdown was triggered last week by China’s crackdown on cryptocurrency exchanges and token-issuing platforms. These actions by Chinese authorities seem to be in pursuance of its “blockchain but not cryptos” policy, which has seen close to 173 cryptocurrency exchanges shut down, according to the 2019 financial stability report of the People’s Bank of China.
The pair is currently trading at 46.35, just short of the 47.06 previous support which now acts as a resistance level for today’s price action. A break above this new resistance level could target the next resistance level at 51.65 (previous low of Oct 16 and previous high of Nov 22). Above this area, further resistance is seen at 54.45 and this price level corresponds to previous lows of 26 October and November 18/19.
On the flip side, failure to break the current resistance level at 47.06 could open the door for a further selloff to 45.82 and possibly 40.54, where previous highs that should now work in role reversal were seen in February 2019.More content