Litecoin price is facing a strong resistance near the $45.00 area against the US dollar. LTC remains well supported and it could soon break the $45.00 and $48.00 resistances.
Key Talking Points
- Litecoin price rallied this past week and settled above the $42.00 support (Data feed of Kraken) against the US Dollar.
- There is a major bullish trend line in place with support at $42.80 on the hourly chart.
- LTC price could dip a few points, but it may soon break the $45.00 resistance area.
Litecoin Price Analysis
This past week, there were bullish moves above the $40.00 resistance in litecoin price against the US dollar. The LTC/USD pair gained traction, broke the $42.00 resistance and traded towards the $45.00 resistance area.
Looking at the chart, LTC price tested the $45.00 resistance and later corrected lower. The price dipped towards the $42.00 support and the 100 hourly simple moving average. Buyers remained in action above the $42.00 support and the price climbed higher again.
There were a couple of attempts to break the $45.00 resistance, but buyers failed. The recent swing high was formed at $44.50 and the price is currently correcting lower. It declined below the 23.6% Fib retracement level of the recent wave from the $42.03 low to $44.50 high.
However, there are many supports on the downside near the $42.00 level. More importantly, there is a major bullish trend line in place with support at $42.80 on the hourly chart.
Above the trend line, the 50% Fib retracement level of the recent wave from the $42.03 low to $44.50 high is at $43.20 to act as a support. Therefore, dips from the current levels remain supported near $43.00, $42.80 and $42.40.
Once the current correction wave is complete, litecoin price could make another attempt to surpass the $44.50 and $45.00 resistance levels. A successful close above $45.00 will most likely trigger solid bullish moves in LTC price above the $46.00 and $48.00 resistance levels. The main resistance for buyers could be $50.00, where sellers are likely to emerge.
The market data is provided by TradingView.
