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.
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.
