Litecoin price followed a bullish path and recovered above $30.00. LTC may continue to move higher and it could test the $38.00 or $40.00 resistance level.
Key Talking Points
- Litecoin price recovered nicely and broke the $30.00 and $32.00 resistances (Data feed of Kraken) against the US Dollar.
- There is a major bullish trend line in place with support at $30.50 on the hourly chart.
- LTC price remains well supported on dips and it could extend gains above $38.00 in the near term.
Litecoin Price Analysis
After forming a base above the $25.00 level, litecoin price recovered nicely above the $30.00 barrier against the US dollar. The LTC/USD pair even broke the $30.00 and $32.00 resistance levels to move into a bullish zone. Similarly, bitcoin, ripple, Ethereum and EOS are placed nicely in a positive zone.
Looking at the chart, LTC price even climbed above the $33.00 level and formed a new weekly high at $33.06. At the moment, the price is correcting lower towards $31.00, but it remains well above the 100 hourly simple moving average.
An initial support is near the $30.85 level (the previous resistance) and the 50% Fib retracement level of the last wave from the $28.63 low to $33.06 high. More importantly, there is a major bullish trend line in place with support at $30.50 on the hourly chart.
The trend line support coincides with the 61.8% Fib retracement level of the last wave from the $28.63 low to $33.06 high. Besides, the 100 hourly SMA is positioned below the trend line near $30.00 to act as a solid support.
Therefore, if the price corrects lower, it is likely to find a strong support near the $30.00 zone. On the upside, the price must break the $32.50-33.00 zone to extend the current wave.
The next stop for litecoin buyers could be near the $38.00 level, above which LTC is likely to climb towards the $40.00 level. On the downside, a break below $30.00 may push the price towards $27.70.
The market data is provided by TradingView.
