Litecoin Price Analysis: LTC/USD Facing Key Resistance Near $58
Litecoin price recovered nicely from the $50.00 support against the US Dollar. LTC/USD is moving higher but it could face sellers near $56.50 and $58.00.
Key Talking Points
·Litecoin price jumped back above the $52.00 level after testing $50.00 (Data feed of Kraken) against the US Dollar.
·There is a key bearish trend line in place with resistance at $56.50 on the hourly chart of the LTC/USD pair.
·LTC price is likely to face a strong resistance near the $56.50 and $58.00 levels.
Litecoin Price Forecast
After a steady decline, litecoin price found support near the $50.50 level against the US dollar. The LTC/USD pair started a solid recovery and moved back above the $52.00 and $54.00 levels.
Looking at the chart, LTC price traded as low as $50.50 and later started an upside move. The price broke the $52.00 resistance and the 50% Fib retracement level of the last decline from the $57.91 high to $50.46 swing low.
However, the upside move was capped by the $55.00 level and the 100 hourly simple moving average. Moreover, the 61.8% Fib retracement level of the last decline from the $57.91 high to $50.46 swing low also acted as a resistance.
More importantly, there is a key bearish trend line in place with resistance at $56.50 on the hourly chart of the LTC/USD pair. The pair is currently consolidating below the $56.00 level and it seems like the price may dip a few points.
On the downside, an initial support is near the $53.50 level, below which the price could test the $52.00 support area. On the other hand, a break above the $56.00 resistance and the trend line may push the price towards the $58.00 resistance.
The $58.00 and $60.00 levels are important barriers for buyers and it could continue to prevent gains. Overall, litecoin price may range trade below the $58.00 level before it makes an attempt to clear the $60.00 resistance in the near term.