Litecoin Price Analysis: LTC/USD Testing Key Support
Litecoin price is currently correcting lower after testing the $90.00 resistance against the US Dollar. LTC/USD remains supported on the downside near $84.50-85.00.
Key Talking Points
·Litecoin price remains in a positive above a key support at $84.50 (Data feed of Kraken) against the US Dollar.
·There is a short-term declining channel formed with resistance near $87.00 on the hourly chart of the LTC/USD pair.
·The pair remains well supported on the downside near the $84.50 and $85.00 levels.
Litecoin Price Forecast
Yesterday, we saw bullish moves in litecoin price towards the $90.00 level against the US dollar. The LTC/USD pair traded as high as $90.59 before it started a downside correction.
Looking at the chart, the price corrected lower and moved below the $88.00 level. It also moved below the 38.2% Fib retracement level of the last leg from the $80.95 low to $90.59 high.
However, the downside move was protected by a crucial support area near $85.00. More importantly, the 100 hourly simple moving average also acted as a solid support near $85.00.
The last but not the least, the 50% Fib retracement level of the last leg from the $80.95 low to $90.59 high also protected more losses. At the moment, the price is trading in a range above the $85.00 support.
Moreover, there is a short-term declining channel formed with resistance near $87.00 on the hourly chart of the LTC/USD pair. Should the pair break the channel resistance, it could resume its upside move above $88.00.
In the mentioned case, the price may possibly break the $90.00 resistance for more gains in the near term. On the other hand, if the price fails to move the channel resistance, it may perhaps retest the $85.00 support.
Overall, litecoin price is trading in a positive zone above $85.00 and the 100 hourly SMA. As long as it is trading above the stated support, it could continue to eye more upsides towards $100.00. Below $85.00 and $84.50, the next support is at $80.00.