Litecoin price formed a decent support at $74.50 and recovered against the US Dollar. LTC/USD must clear the $80.00 resistance to recover further in the near term.
Key Talking Points
- Litecoin price managed to move higher above the $78.00 level (Data feed of Kraken) against the US Dollar.
- There was a break above a key connecting bearish trend line with resistance near $77.00 on the hourly chart of the LTC/USD pair.
- The pair is still below the $80.00 resistance zone, which is a crucial barrier for more gains.
Litecoin Price Forecast
This past week, there was a solid support base formed near the $74.50 low in litecoin price against the US dollar. The LTC/USD pair slowly started an upward move and traded above the $77.00 resistance.
Looking at the chart, the price broke a few tiny hurdles near $66.80 and the 100 hourly simple moving average to move into a bullish zone. More importantly, there was a break above a key connecting bearish trend line with resistance near $77.00.
It opened the doors for more gains and the price moved above the $79.00 level. However, litecoin buyers failed to gain momentum and the price did not test the $80.00 resistance zone.
A high was formed at $79.38 before the price started a downward correction. It declined below the 23.6% Fib retracement level of the last wave from the $75.34 low to $79.38 high.
However, there are a few key supports near the $77.00 level. An initial support is the 50% Fib retracement level of the last wave from the $75.34 low to $79.38 high at $77.36.
Below this, the price could test the previous resistance (now support) at $77.00 and the 100 hourly simple moving average. Should there be more declines, the price could revisit the $75.00 support area.
On the upside, litecoin price must clear the $80.00 resistance to set the pace for more gains. The current price action is positive as long as LTC is above $77.00.
The market data is provided by TradingView.