Litecoin News

Litecoin Price Analysis: LTC/USD Approaching Crucial Support

Litecoin price started a fresh downside move after failing near $305 against the US Dollar. LTC/USD is now approaching a major support at $240-250.

Key Talking Points

  • Litecoin price managed to move higher recently and traded as high as $305 (Data feed of Kraken) against the US Dollar before starting a correction.
  • There are two connecting bullish trend lines forming with supports at $255 and $245 on the hourly chart of LTC/USD pair.
  • The pair is likely to stay above $245 and move back above the $270 level in the near term.

Litecoin Price Forecast

In the previous analysis, I mentioned that Litecoin price may bounce back above $250 against the US Dollar. The LTC/USD pair did move higher and was able to move above the $250 and $260 resistance levels.

The upside move was positive and the pair traded as high as $305 before it faced selling interest. Later, a downside move was initiated and the pair moved below the 50% Fib retracement level of the last wave from the $225 low to $305 high.

However, a major support area around $250 and the 100 hourly simple moving averages are preventing downsides. There are also two connecting bullish trend lines forming with supports at $255 and $245 on the hourly chart.

The 61.8% Fib retracement level of the last wave from the $225 low to $305 high is holding losses at present. As long as the price is above the $245-255 support area, there remains a chance of LTC moving higher.

Should there be a break below $245, the price could test the last swing low of $225. On the flip side, litecoin price has to trade above the $265 resistance in order to move back in the bullish zone.

A successful close above $265 and $270 would open the doors for a push toward $300 in the near term. Above $300, LTC/USD could gain traction for a run towards the $325-330 levels.

The technical indicators on the hourly chart of LTC are showing signs of a short-term trend change from bearish to bullish.

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: aayushjindal@ethereumworldnews.com
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