Litecoin price recently corrected lower and tested the $85.00 support area against the US dollar. LTC is currently moving higher and it trading near a crucial resistance area near $90.00
Key Talking Points
- Litecoin price found a strong support near the $85.00 level and bounced back (Data feed of Kraken) against the US Dollar.
- There is a major bearish trend line forming with resistance at $89.80 on the hourly chart.
- LTC price could start a strong upward move above the $90.00 resistance level.
Litecoin Price Analysis (LTC)
Recently, there was a major downside correction in bitcoin, Ethereum, EOS, litecoin and ripple against the US Dollar. The LTC/USD pair failed to gain pace above the $94.00 resistance and declined below the $90.00 support level.
Looking at the chart, LTC price even broke the $88.00 support level and settled below the 100 hourly simple moving average. It tested the key $85.00 support area and recently started a fresh upward move.
The price traded above the $87.00 resistance level and the 23.6% Fib retracement level of the recent decline from the $93.57 high to $84.89 swing low. However, the price is now facing a strong resistance near the $90.00 level.
Besides, there is a major bearish trend line forming with resistance at $89.80 on the hourly chart. The 50% Fib retracement level of the recent decline from the $93.57 high to $84.89 swing low is also near the $90.00 level.
Finally, the 100 hourly simple moving average is positioned near $90.00. Therefore, a successful break above the $90.00 resistance will most likely open the doors for more gains in the near term.
On the upside, the next key resistance is near the $91.50 level, above which it could even surpass the main $94.00 resistance. The main hurdles are near the $98.00 and $100.00 levels.
Conversely, if LTC price fails to climb above the $90.00 barrier, it could decline once again. On the downside, an immediate support is near the $87.00 level, below which it could retest the main $85.00 support area.
The market d2ata is provided by TradingView.