Litecoin price found support near $79.40 and recovered against the US Dollar. LTC/USD broke a key resistance at $84.50 to move into a bullish zone.
Key Talking Points
- Litecoin price started a decent recovery and traded above $82.00 and $84.00 (Data feed of Kraken) against the US Dollar.
- There was a break above a key bearish trend line with resistance at $82.20 on the hourly chart of the LTC/USD pair.
- The pair is placed nicely above the $84.00 level and the 100 hourly simple moving average.
Litecoin Price Forecast
This past week, there was a sharp decline below $90.00 in litecoin price against the US dollar. The LTC/USD pair declined and even spiked below the $80.00 level.
Looking at the chart, the price found a decent buying interest near the $79.50 and later started an upward move. It traded above the $80.00 and $82.00 levels.
Moreover, there was a break above the 23.6% Fib retracement level of the last decline from the $94.55 high to $79.31 low. More importantly, there was a break above a key bearish trend line with resistance at $82.20 on the hourly chart of the LTC/USD pair.
The pair even succeeded in clearing the $84.50 resistance and the 100 hourly simple moving average. It has opened the doors for more gains above $85.00 in the near term.
The next resistance is at $87.00 and the 50% Fib retracement level of the last decline from the $94.55 high to $79.31 low. Once the price breaks the $87.00 resistance, it is likely to test the $90.00 level.
On the other hand, if the price dips from the current levels, the previous resistance at $84.50 and the 100 hourly SMA (currently at $84.00) are likely to hold declines in litecoin. Below this, the price is likely to move back in a bearish zone towards $80.00.
To sum up, the current price action is positive for LTC as long as the price is trading above the $84.00 level and the 100 hourly SMA.
The market data is provided by TradingView.
