Litecoin price corrected lower from the $94.50 swing high against the US Dollar. LTC/USD is currently approaching a crucial support zone near $84.50.
Key Talking Points
- Litecoin price started a downside correction after trading as high as $94.56 (Data feed of Kraken) against the US Dollar.
- There is a major bullish trend line in place with support at $84.50 on the hourly chart of the LTC/USD pair.
- The pair is likely to bounce back as long as it is above the $84.50 support area.
Litecoin Price Forecast
There was a solid rise towards the $95.00 level in litecoin price against the US dollar. The LTC/USD pair traded as high as $94.56 before sellers appeared and a downside correction was initiated.
Looking at the chart, the price declined by more than $5.00 and broke the $90.00 support. There was also a break below the 50% Fib retracement level of the last leg from the $81.40 swing low to $94.50 swing high.
However, the price is approaching a significant support area near $84.50. There is also a major bullish trend line in place with support at $84.50 on the hourly chart of the LTC/USD pair.
More importantly, the 76.4% Fib retracement level of the last leg from the $81.40 swing low to $94.50 swing high is positioned at $84.40. The last but not the least, the 100 hourly simple moving average is sitting near the $84.00 level.
Therefore, the $84.00-84.50 support zone holds a lot of significance in the near term. As long as the price is above the $84.00-84.50 support zone, it is likely to bounce back and resume its upside move.
On the upside, an initial resistance is near the $88.00 level. Above this, the next resistance sits near the $90.00 level.
Overall, litecoin price is still in a bullish zone above $84.00 and the 100 hourly SMA. Below this, the price will most likely accelerate the decline towards the next key support around the $80.00 level.
The market data is provided by TradingView.
