Litecoin Price Analysis: LTC/USD Correction Could Be Limited
Litecoin price is holding the $100 support area against the US Dollar. LTC/USD could correct higher or consolidate in the near term between $100-112.
Key Talking Points
Litecoin price is forming a support base above the $100 level (Data feed of Kraken) against the US Dollar.
Yesterday’s highlighted connecting bearish trend line was broken with resistance at $105 on the hourly chart of the LTC/USD pair.
The pair may consolidate in the short term above the $100 level before making the next move.
Litecoin Price Forecast
Yesterday, we saw a solid downside move below the $110 support in litecoin price against the US dollar. The LTC/USD pair traded towards the $100 handle and it formed a low around $103.
Looking at the chart, the price formed a decent support base near $102-103 and is currently correcting higher. It traded a few points above the 23.6% Fib retracement level of the last drop from the $119.20 high to $103.07 low.
Moreover, yesterday’s highlighted connecting bearish trend line was broken with resistance at $105 on the hourly chart of the LTC/USD pair. There are chances of more gains above the $105 level in the near term.
However, there are many hurdles on the upside around the $100 level. The most important resistance is near the 50% Fib retracement level of the last drop from the $119.20 high to $103.07 low around $111.
Therefore, if the price corrects higher from the current levels, it could face sellers near the $108, $110 and $111 levels. Above this last, the price may test the 100 hourly simple moving average, which is positioned near the $114 level.
On the flip side, if the price moves down once again, it could break the $103 swing low. Below this, there is a risk of a downside break below the $100 level in the near term.
Overall, the current market sentiment is slightly positive with ranging moves above the $100 handle.