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Litecoin Price Analysis: LTC/USD is Back Bullish?

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Litecoin price has recovered nicely above $220 against the US Dollar. LTC/USD might continue to move higher in the near term towards $320.

Key Talking Points

  • Litecoin price after a sharp decline towards the $160 level found support (Data feed of Kraken) against the US Dollar.
  • The LTC/USD pair is currently attempting a close above a major bearish trend line at $270 on the 4-hour chart.
  • The pair might soon break the $270 resistance and close above the 100 simple moving average.

Litecoin Price Forecast

Recently, we saw a sharp downside move in all major cryptos such as bitcoin, Ethereum and Litecoin. Litecoin price made a sharp U-turn from the $370 swing high against the US Dollar. The LTC/USD pair declined and broke the $300 and $200 support levels.

The decline was nasty as the price trimmed most of its gains and traded below the $180 level. The price also broke the $175 support and traded as low as $160. Later, a correction wave was initiated and the price was able to move above the 38.2% Fib retracement level of the last drop from the $370 high to $160 low.

Litecoin Price Analysis
Cryptocurrency charts and prices provided by TradingView

On the upside, there is a major resistance area near $270 and the 100 simple moving average on the 4- hours chart. There is also a major bearish trend line at $270 on the same chart.

A close above the $270 resistance and the 100 SMA is needed for buyers to gain traction. The price also needs to close above the 61.8% Fib retracement level of the last drop from the $370 high to $160 low. Once there is a close above the $270 and $280 levels, the price could gain momentum.

However, a proper close above the $300 level would be the best bullish case scenario. In the mentioned case, the price could continue to move higher towards the $370 level.

On the downside, the $240 level is a major support followed by $220. Should litecoin buyers fail to hold $220, there can be a retest of the $180 support in the near term.

Trade safe traders and do not overtrade!

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