Litecoin price corrected lower recently and tested the $75.00 support against the US Dollar. LTC rebounded nicely and it seems to be preparing for a fresh increase above $87.00.
Key Talking Points
- Litecoin price formed a decent support above the $75.00 level and recovered (Data feed of Kraken) against the US Dollar.
- There is a major bearish trend line formed with resistance near the $86.20 level on the 4-hour chart.
- LTC price must break the $86.20 and $87.00 levels to climb back towards the $95.00 and $100.00 levels.
Litecoin Price Analysis (LTC)
This past week, we saw a downside correction in bitcoin, Ethereum, EOS, ripple, litecoin and other altcoins against the US dollar. The LTC/USD pair declined below the $85.00 and $80.00 support levels before buyers appeared near the $75.00-76.00 support area.
Looking at the 4-hour chart, LTC price traded as low as $75.60 and recently recovered above the $77.50 resistance area. There was a break above the 23.6% Fib retracement level of the last drop from the $92.49 high to $75.60 low.
More importantly, there was a close above the $80.00 level and the 100 simple moving average (4-hour). The price is currently testing the $85.00 resistance and the 50% Fib retracement level of the last drop from the $92.49 high to $75.60 low.
There is also a major bearish trend line formed with resistance near the $86.20 level on the 4-hour chart. A successful break above the trend line and $87.00 may perhaps open the doors for more gains.
The price could rally towards the $95.00 level and it may even revisit the $100.00 resistance. On the downside, the $80.00 level is likely to act as a strong support along with the 100 SMA if the price corrects lower from the current levels. Below $80.00, the price could revisit the $75.00 support area.
Overall, litecoin price is clearly trading with a positive bias above the $80.00 level and the 100 simple moving average (4-hour). Therefore, there are high chances of an upside break above $87.00 and LTC is likely to climb higher towards the $95.00 and $100.00 resistance levels.
The market data is provided by TradingView.
