Litecoin price corrected lower and tested the $40.00 support against the US Dollar. LTC is once again gaining bullish momentum and it could continue towards the $48.00 and $50.00 levels.
Key Talking Points
- Litecoin price formed a solid support near $40.00 and jumped higher (Data feed of Kraken) against the US Dollar.
- There was a break above a crucial triangle pattern with resistance at $41.50 on the 4-hour chart.
- LTC price is likely to gain traction and climb towards the $48.00 and $50.00 resistance levels.
Litecoin Price Analysis (LTC to USD)
After a solid upward move, litecoin price topped near the $47.00 level against the US dollar. The LTC/USD pair started a downside correction below the $45.00 level and tested the key $40.00 support area, where buyers emerged.
Looking at the 4-hour chart, LTC price formed a strong support base near the $40.00 level and remained well above the 100 simple moving average (4-hour). The last swing low was formed at $39.90 before the price started a fresh upward move.
It climbed above the $41.00 resistance and the 23.6% Fib retracement level of the last decline from the $47.06 high to $39.90 low. More importantly, there was a break above a crucial triangle pattern with resistance at $41.50 on the same chart.
The recent triangle break has opened the doors for more gains above the $43.00 and $45.00 levels. An immediate resistance is near the $43.50 level and the 50% Fib retracement level of the last decline from the $47.06 high to $39.90 low.
Once buyers gain traction above the $45.00 resistance, it could revisit the $47.00 swing high in the near term. Above $47.00, buyers are likely to aim the all-important $50.00 resistance area.
Overall, litecoin price is back in a bullish zone above $41.50. LTC could continue to move higher and it might accelerate gains above the $43.50 and $45.00 resistance levels. If there is a fresh downside correction, the broken resistances at $41.50 and $41.00 are likely to protect losses. The main support is near the $40.00 level, below which the price might revisit the $38.00 pivot level.
The market data is provided by TradingView.