Litecoin price is forming a solid support above the $22.00 level. LTC seems to be forming a base for a major upward move above $25.00 and $30.00.
Key Talking Points
- Litecoin price remained well bid above the $22.00 support area (Data feed of Kraken) against the US Dollar.
- There was a break above a major bearish trend line with resistance at $23.65 on the hourly chart of the LTC/USD pair.
- LTC price may perhaps start a fresh upward move as long as it is above $20.00.
Litecoin Price Forecast
Recently, we saw a nasty decline towards the $20.00 support in litecoin price against the US dollar. The LTC/USD pair traded as low as $22.20 and later it started forming a support base above $22.00.
Looking at the chart, LTC price climbed higher recently and traded above the $25.00 level. However, the price failed to gain bullish momentum above the $26.00 resistance and the 100 hourly simple moving average.
As a result, there was a fresh decline and the price retested the $22.00 support area. Buyers protected further declines and pushed the price above $23.50. There was a break above the 23.6% Fib retracement level of the recent decline from the $26.57 high to $22.78 low.
Moreover, there was a break above a major bearish trend line with resistance at $23.65 on the hourly chart of the LTC/USD pair. The pair tested the $25.00 resistance and the 50% Fib retracement level of the recent decline from the $26.57 high to $22.78 low.
It is currently trading lower, but there is a strong support formed near the $23.00 and $22.00 levels. Therefore, there are high chances of a fresh bullish wave above the $25.00 resistance and the 100 hourly SMA in the near term.
The current price action is short term bearish below $25.00. Having said that, it seems like LTC sellers are exhausted, which could result in an upward move towards $30.00 in litecoin as long as there is no break below $22.00.
The market data is provided by TradingView.