Litecoin Price Analysis: LTC/USD Testing Key Support
Litecoin price traded above the $165 level against the US Dollar. LTC/USD failed to hold gains, corrected lower, and is currently testing a major support near $154.
Key Talking Points
Litecoin price climbed further higher and traded to a new monthly high near $166 (Data feed of Kraken) against the US Dollar.
The LTC/USD pair is currently trading near a major bullish trend line with support at $154 on the hourly chart.
The pair should stay above the $154 support area to avoid further declines in the near term.
Litecoin Price Forecast
There was an extension to yesterday’s upside move above the $160 level in litecoin price against the US dollar. The LTC/USD pair traded to a new monthly high at $166.05 before it faced sellers.
Later, a fresh downside correction started and the price moved below the $160 support level. The decline was such that the price even broke the $156-157 support zone. However, the downside move was protected by the $150 support area and the 100 hourly simple moving average.
More importantly, the LTC/USD pair is currently holding a major bullish trend line with support at $154 on the hourly chart. Therefore, as long as the price is above $154 and the 100 hourly SMA, it could bounce back.
On the upside, an initial resistance is near the 38.2% Fib retracement level of the last decline from the $166.05 high to $150.87 low. Additionally, the broken support at $157 may perhaps act as a resistance.
The next hurdle for buyers is near the 50% Fib retracement level of the last decline from the $166.05 high to $150.87 low at $158.50. A successful close above the $158.50 resistance will most likely push the price above the $160 level.
Thus, it all depends on the $154 support and the 100 hourly SMA. If buyers stay in control, litecoin price could bounce back and break the $160 resistance once again.
On the flip side, if there is a downside break below $155 and $152, there might be more slides toward $145 in the near term.