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Litecoin has corrected back to the $65 support
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LTC is nearly entering the bearish territory
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The cryptocurrency needs to recover above key moving averages
Litecoin (LTC/USD) correction could now be over. In its latest market dip, the cryptocurrency settled at an expected support of $65. The bulls have now defended this crucial zone, suggesting that a recovery could be well on course. But there could be a catch.
2023 is just around the corner. Litecoin is among those cryptocurrencies expected to surge strongly. As CoinJournal previously reported, Litecoin will undergo its third halving event around July 2023. The cryptocurrency showed bullish signals as investors started to speculate ahead of the date. Who knows how much surge this event will lead to? Furthermore, the bear market for all cryptocurrencies could have subsided by the same date.
The point is that a confluence of these positive developments could boost the LTC price. But have bulls given up so early as LTC dropped from the $84 local top? I suppose not, as the current decline looks like a normal market correction. But the next price action will tell since the outlook isn’t still very convincing. Here is the price action.
LTC attempts recovery at support, but moving averages offer resistance
From the daily technical outlook, LTC bulls are battling the $65 support. The price has stabilised at this level.
However, the technical indicators are a bit unforgiving for LTC buyers. The MACD indicator is bearish and looking to shift below the neutral zone. The latest decline also saw Litecoin crash below the moving averages. This is the first time since early November that LTC has been trading below the 20-day and 50-day MA.
Will LTC trade higher or lower?
The next trading action of the LTC price depends on market fundamentals. Technically, buyers have to recover above the moving averages to consider a realistic bullish market.
In a possible bear scenario, LTC could find support at $56. That would invalidate the bullish view and put bears in control. Investors should watch the price action at $65.