Litecoin price managed to hold the $200 support against the US Dollar. LTC/USD has to move above $250 to gain upside momentum.
Key Talking Points
- Litecoin price succeeded in holding the $200 support zone during the recent decline (Data feed of Kraken) against the US Dollar.
- There is a key bearish trend line forming with current resistance around $240 on the hourly chart of LTC/USD pair.
- The pair has to gain momentum above the $240-250 resistance and the 100 hourly SMA to gain upside momentum.
Litecoin Price Forecast
There was a downside move in Litecoin price from the $285 resistance against the US Dollar. The LTC/USD pair declined in three waves and broke the $250 and $220 support levels. It even traded close to the $200 level.
However, buyers succeeded in preventing further declines and a low was formed at $202.25. Later, the price started an upside recovery and moved above the 23.6% Fib retracement level of the last decline from the $283 high to $202 low.
However, the upside move is facing a strong resistance zone at $250. There is a key bearish trend line forming with current resistance around $240 on the hourly chart of LTC/USD pair.
The 100 hourly simple moving average is also near the $240 resistance and the trend line. Moreover, the 50% Fib retracement level of the last decline from the $283 high to $202 low is around $242.
Overall, it seems like the pair has to move above the $240-250 resistance and the 100 hourly SMA to gain upside momentum. Once there is a proper close above the $250 resistance, litecoin price could accelerate higher towards the $280 level.
Above the mentioned $280 level, the doors will open for a test of the $300 level. On the downside, there is a connecting bullish trend line forming with support at $218. If there is a short-term correction, LTC/USD will most likely find bids around the $218 and $210 levels.
In short, the litecoin price needs to move above $250 to move back in the bullish zone.
Trade safe traders and do not overtrade!