Litecoin price has recovered nicely above $220 against the US Dollar. LTC/USD might continue to move higher in the near term towards $320.
Key Talking Points
Litecoin price after a sharp decline towards the $160 level found support (Data feed of Kraken) against the US Dollar.
The LTC/USD pair is currently attempting a close above a major bearish trend line at $270 on the 4-hour chart.
The pair might soon break the $270 resistance and close above the 100 simple moving average.
Litecoin Price Forecast
Recently, we saw a sharp downside move in all major cryptos such as bitcoin, Ethereum and Litecoin. Litecoin price made a sharp U-turn from the $370 swing high against the US Dollar. The LTC/USD pair declined and broke the $300 and $200 support levels.
The decline was nasty as the price trimmed most of its gains and traded below the $180 level. The price also broke the $175 support and traded as low as $160. Later, a correction wave was initiated and the price was able to move above the 38.2% Fib retracement level of the last drop from the $370 high to $160 low.
On the upside, there is a major resistance area near $270 and the 100 simple moving average on the 4- hours chart. There is also a major bearish trend line at $270 on the same chart.
A close above the $270 resistance and the 100 SMA is needed for buyers to gain traction. The price also needs to close above the 61.8% Fib retracement level of the last drop from the $370 high to $160 low. Once there is a close above the $270 and $280 levels, the price could gain momentum.
However, a proper close above the $300 level would be the best bullish case scenario. In the mentioned case, the price could continue to move higher towards the $370 level.
On the downside, the $240 level is a major support followed by $220. Should litecoin buyers fail to hold $220, there can be a retest of the $180 support in the near term.