Litecoin Price Analysis

Litecoin (LTC) Price Analysis: Breakout or Further Decline?

Litecoin price rallied above the $100.00 resistance level before correcting lower against the US dollar. LTC declined below the $98.00 support after a strong decline in bitcoin and Ethereum.

Key Talking Points

  • Litecoin price surged towards the $108.00 level before correcting lower (Data feed of Kraken) against the US Dollar.
  • There was a break below a key bullish trend line with support at $92.50 on the hourly chart.
  • LTC price broke the $90.00 support level and traded as low as $83.99 recently.

Litecoin Price Analysis (LTC)

In the past three days, there was a strong rally in bitcoin, coupled with gains altcoins such as Ethereum, EOS, litecoin and ripple against the US Dollar. The LTC/USD pair surged above the $95.00 and $100.00 resistance levels before it faced sellers near the $107.50 and $108.00 levels.

Litecoin Price Analysis LTC Chart

Looking at the chart, LTC price traded as high as $107.40 and recently started a heavy downside correction. It broke the $102.00 and $100.00 support levels to enter a short term bearish zone.

During the decline, there was a break below a key bullish trend line with support at $92.50 on the hourly chart. The pair even broke the $90.00 support level and settled well below the 100 hourly simple moving average.

A swing low was formed at $83.99 and the price is currently recovering higher. It climbed above the 23.6% Fib retracement level of the recent decline from the $101.45 high to $83.99 swing low.

However, there are many hurdles near the $92.50 and $94.00 levels. The 100 hourly simple moving average is positioned along with the previous support trend line and a connecting bearish trend line on the same chart at $92.70.

Therefore, the price is likely to struggle to clear the $92.70 and $93.50 resistance levels. A close above the $94.00 level might start a fresh increase in litecoin price towards $100.00 and $105.00.

Conversely, if LTC price fails to climb above the $94.00 level, it could decline once again. On the downside, the main support is near the $83.00-84.00 zone, below which it could test $79.50.

The market d2ata is provided by TradingView.

Aayush Jindal
About author

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets Reach Aayush via email: aayushjindal@ethereumworldnews.com
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