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.
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.