Litecoin price dipped recently towards $80.00 against the US Dollar. LTC/USD is currently consolidating and is preparing for an upside move above $85.00.
Key Talking Points
· Litecoin price is facing a crucial resistance near $85.00 once again (Data feed of Kraken) against the US Dollar.
· There was a break above an important bearish trend line with resistance near $83.50 on the hourly chart of the LTC/USD pair.
· The pair has to break the $85.00 resistance and the 100 hourly SMA to gain momentum.
Litecoin Price Forecast
There was a downside correction in litecoin price below the $84.00 and $83.00 levels against the US dollar. The LTC/USD pair traded towards the $81.50 level before buyers appeared.
Looking at the chart, the price formed a low at $81.38 and later started an upward move. The price moved above the 23.6% Fib retracement level of the last drop from the $90.61 high to $81.38 low.
More importantly, there was a break above an important bearish trend line with resistance near $83.50 on the hourly chart of the LTC/USD pair. However, the upside move was capped by the previous support at $85.00.
Moreover, the 38.2% Fib retracement level of the last drop from the $90.61 high to $81.38 low and the 100 hourly simple moving average also acted as key resistances. If there is a break and close above the $85.00 resistance, there could be more gains in the near term.
The next resistance is near the $87.00 level, above which, the price will most likely surge above the $88.00 level. On the flip side, if the price fails to move above $85.00 and the 100 hourly SMA, it could retest the $82.60 support.
Below the $82.60 support, litecoin price may perhaps revisit the last swing low near $81.50. Overall, LTC/USD is trading in a positive zone as long it is above $82.60 and $81.50. Below these, the price may well move into a short-term bearish zone towards $75.00.
The market data is provided by TradingView.