Litecoin price tested the $225 support and recovered against the US Dollar. Let’s see if LTC/USD can recover above $250 or not in the short term.
Key Talking Points
- Litecoin price declined further and traded towards the $225 support (Data feed of Kraken) against the US Dollar.
- There is a major bearish trend line forming with resistance at $245 on the hourly chart of LTC/USD pair.
- The pair must break and settle above $245 to gain upside momentum towards the $265 resistance.
Litecoin Price Forecast
There was an extension of yesterday’s decline in Litecoin price towards the $225 support against the US Dollar. The LTC/USD pair tested the $225 support and managed to hold the 61.8% Fib retracement level of the last upside wave from the $205 low to $265 high.
The pair is now trading with a minor bullish bias and has moved above the $240 level and the 100 hourly simple moving average. IT has also moved above the 38.2% Fib retracement level of the last decline from the $265 high to $224 low.
However, there is a major bearish trend line forming with resistance at $245 on the hourly chart of LTC/USD pair. The pair has to move above the $245 resistance if has to break $250 for a test of the $265 resistance.
The trend line resistance is close to the 50% Fib retracement level of the last decline from the $265 high to $224 low. Therefore, a successful close above $245 will most likely push the price further higher towards the $265 level.
On the downside, the 100 hourly SMA and the $230 level are decent supports. Moreover, there is a connecting bullish trend line forming on the same chart with support at $232.
As long as litecoin price is above the last low of $224, it could move above $245 and $250 resistance levels. On the flip side, a downside break below the $224-220 levels could put a lot of pressure on LTC/USD towards the $200 level.
Trade safe traders and do not overtrade!