Litecoin Price Analysis

Litecoin Price Analysis: Can LTC/USD Hold 100 SMA?

Litecoin Price Analysis

Litecoin price is currently correcting lower from $135 against the US Dollar. LTC/USD is holding the 100 hourly SMA and it could bounce back.

Key Talking Points

  • Litecoin price is trading in a positive zone above the $125 pivot level (Data feed of Kraken) against the US Dollar.
  • Recently, there was a break below a connecting bullish trend line with support at $130 on the hourly chart of the LTC/USD pair.
  • The pair is currently correcting lower, but it remains supported above $137 and the 100 hourly simple moving average.

Litecoin Price Forecast

The past few sessions were mostly neutral with positive signs above $125 in litecoin price against the US dollar. The LTC/USD pair traded towards the $135 level, but it failed to break the stated level.

There were three attempts made to clear the $134-135 resistance zone, but buyers failed to gain momentum. As a result, there was a downside reaction and the price broke the 23.6% Fib retracement level of the last leg from the $113 low to $135 swing high.

Litecoin Price Analysis

Moreover, there was a break below a connecting bullish trend line with support at $130 on the hourly chart of the LTC/USD pair. The pair tested the $127 support and the 100 hourly simple moving average.

It seems like the downside move is finding support near the 100 hourly SMA and the 38.2% Fib retracement level of the last leg from the $113 low to $135 swing high.

On the downside, below $127, the next major support is near $125. The stated $125 support protected losses on many occasions and it may continue to act as a strong barrier for sellers. If the price holds the 100 hourly SMA, there is a chance of it moving back above $130.

A break above the $130 level will most likely push the price towards the $135 resistance zone. Overall, a proper break above $135 would initiate further upsides in litecoin price in the near term.

Trade safe traders and do not overtrade!

*The market data is provided by TradingView.

Aayush Jindal
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: [email protected]