Litecoin Price Analysis

Litecoin (LTC) Price Analysis: Rally Could Extend To $50

Litecoin price rallied recently after forming a support base at $31.00. LTC tested the $40.00 resistance and it may continue to move higher towards $50.00

Key Talking Points

  • Litecoin price finally surged higher towards the $40.00 resistance (Data feed of Kraken) against the US Dollar.
  • There is a major bullish trend line formed with support at $37.50 on the hourly chart.
  • LTC price remains well supported and it could extend gains above $40.00 and $44.00.

Litecoin Price Analysis

This past week, we discussed about a possible upward move towards $40.00 in litecoin price against the US dollar. The LTC/USD pair gained momentum recently, broke the $35.00 resistance, and tested the $40.00 barrier.

Litecoin Price Analysis LTC Chart

Looking at the chart, LTC price settled above the $35.00 resistance and the 100 hourly simple moving average. A new yearly high was formed at $40.06 and later the price started a downside correction.

It moved below the $38.50 level and the 23.6% Fib retracement level of the last wave from the $34.21 low to $40.06 high. However, the decline was protected by the $37.80-38.00 support area, and the price is currently consolidating gains.

On the upside, there is a short term resistance at $39.00 and a connecting bearish trend line on the hourly chart. A break above the $39.00 and $40.00 resistance levels may trigger more gains in the near term.

The next key resistance is at $42.00, above which the price could trade towards the $44.00 level. The main resistance above $44.00 is at $50.00.

On the other hand, if there is an extended correction, the price could test the $37.50 support or the 50% Fib retracement level of the last wave from the $34.21 low to $40.06 high. Besides, there is a major bullish trend line formed with support at $37.50 on the same chart.

Overall, litecoin price clearly gained bullish momentum above $38.00 and LTC may continue to move higher towards the $42.00 or $44.00 level. On the downside, the main supports are $38.00 and $37.50.

The market data is provided by TradingView.

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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