Litecoin is currently correcting deeply oversold readings on the RSI. The recovery can reach the 20-day EMA, which is likely to act as the first barrier.
As the decline has been sharp, the recovery is also likely to be strong. Above the 20-day EMA, the LTC/USD pair can reach the $47 level. Aggressive traders can try to trade the counter-trend rally, keeping tight stops and aiming for small targets.
Contrary to our opinion, if the pullback fizzles and the bears resume the downtrend, the next support on the downside is $20.