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Litecoin Price Analysis: Can LTC/USD Break This?

Litecoin Price Analysis: Can LTC/USD Break This?

Litecoin price started correcting lower from $57.30 against the US Dollar. LTC/USD is now poised to complete the correction and break higher.

Key Talking Points

  • Litecoin price tested an important support area recently at $53.10 against the US Dollar.
  • There is a declining channel forming with resistance at $54.50 on the hourly chart of LTC/USD.
  • The pair needs to break the $54.50 and $55.00 resistance levels to challenge $57.00 again.

Litecoin Price Forecast

This past week, we saw a decline in Litecoin price towards the $50.00 handle against the US Dollar. The LTC/USD pair formed a solid support above $50.00 and recovered sharply above $55.00.

It traded as high as $57.28 recently before starting a downside correction. The pair moved down below the 23.6% Fib retracement level of the last wave from $50.50 low to $57.28 high, and settled below the 100 hourly simple moving average.

Litecoin Price Analysis: Can LTC/USD Break This?

Cryptocurrency charts and prices provided by TradingView

The pair is currently following a declining channel with resistance at $54.50 on the hourly chart, and it recently tested the 50% Fib retracement level of the last wave from $50.50 low to $57.28 high.

The $53.10-53.00 support area is significant since it acted as a support on many occasions. The last 3-4 candles are positive, but buyers are struggling to gain momentum above $54.50 and the 100 hourly SMA.

A close above the channel resistance at $54.50 and the 100 hourly SMA, followed by a break of $55.00 is required for buyers to gain momentum. In the mentioned case, the price will most likely retest $57.00 and it could even break it.

On the downside, the most important support is at $53.10-53.00. Should there be a break below $53.00, the price could slide back towards the $50.50-50.50 support area.

Therefore, traders can wait for a break of either $55.00 or $53.00 to consider entering a trade. The hourly RSI for LTC/USD is currently near 42 and attempting to move higher, which is a short-term positive sign.

Trade safe traders and do not overtrade!

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]