Litecoin price corrected lower after trading towards $122 against the US Dollar. LTC/USD found support near $116 and is currently trading with a positive bias.
Key Talking Points
- Litecoin price decline was stopped near a major support area at $115-116 (Data feed of Kraken) against the US Dollar.
- There is a significant bullish trend line formed with support at $117 on the hourly chart of the LTC/USD pair.
- The pair may continue to rise as long as it is above the $116 and $115 support levels.
Litecoin Price Forecast
Yesterday, we saw a nice upside move in litecoin price above the $120 level against the US dollar. The LTC/USD pair traded as high as $122.76 before starting a downside correction.
Looking at the chart, the price corrected lower and traded below the $120 support. There was also a break below the 38.2% Fib retracement level of the last leg from the $109.32 low to $122.76 high.
However, the downside move was protected by a major support area near $115-116, which was a resistance earlier. Moreover, the 50% Fib retracement level of the last leg from the $109.32 low to $122.76 high also acted as a support.
The price moved back higher above the $117 level and the 100 hourly simple moving average. More importantly, there is a significant bullish trend line formed with support at $117 on the hourly chart of the LTC/USD pair.
The pair seems to be well placed above the $115-116 support area and it could continue to move higher in the near term. On the upside, an initial resistance sits near the $122 level. Above the stated $122 resistance, the price may perhaps break the $125 level for more gains in the near term.
On the downside, the trend line support at $117 is a decent buy zone. However, the most important support and buy zone is near $115-116. Should there be a break and close below $115, the price will most likely move back in a bearish zone.
The market data is provided by TradingView.
