Litecoin price is correcting higher and is currently above $55.00 against the US Dollar. LTC/USD could break the $58.00 resistance to gain bullish momentum.
Key Talking Points
· Litecoin price averted a downside break and moved back above $55.00 (Data feed of Kraken) against the US Dollar.
· There is a major contracting triangle formed with resistance near the $58.00 level on the hourly chart of the LTC/USD pair.
· LTC may perhaps make the next move either above $58.00 or below $55.00 in the near term.
Litecoin Price Forecast
There was a decent support base formed near $50.00 in litecoin price against the US dollar. The LTC/USD pair recovered and moved above the $52.00 and $55.00 resistance levels.
Looking at the chart, LTC price corrected higher and settled above the $54.50 pivot level. There was also a close above the $55.00 level and the 100 hourly simple moving average.
More importantly, the price broke the 50% Fib retracement level of the last decline from the $61.71 high to $49.40 low. However, there is a major resistance zone formed on the upside near the $58.00 and $60.00 levels.
Additionally, there is a major contracting triangle formed with resistance near the $58.00 level on the hourly chart of the LTC/USD pair. Should the price break the triangle resistance and $58.20, there could be more gains.
In the mentioned case, the price may well continue to move higher towards the $60.00 resistance. An intermediate resistance is near the 76.4% Fib retracement level of the last decline from the $61.71 high to $49.40 low.
However, once the price settles above the $58.00 level, it will most likely gain traction towards $60.00 and $61.70 levels. On the flip side, if there is a downside break below $55.00 and the 100 hourly SMA, the price might move back towards the $52.00 level.
To sum up, litecoin price (LTC) is preparing for the next move either above $58.00 or below $55.00 in the near term.
The market data is provided by TradingView.
