Litecoin Price Analysis: LTC/USD Testing Significant Support
Litecoin price failed to move above $89-90 once again against the US Dollar. LTC/USD is currently correcting lower and is testing a significant support.
Key Talking Points
Litecoin price once again failed to move the $89.00-90.00 resistance zone (Data feed of Kraken) against the US Dollar.
The LTC/USD pair is currently testing yesterday’s highlighted important bullish trend line with support at $84.00 on the hourly chart.
The pair should stay above the $83.00-84.00 support zone to bounce back in the near term.
Litecoin Price Forecast
Yesterday, there was a fresh upside move above the $85.00 level in litecoin price against the US dollar. The LTC/USD pair traded above the $88.00 level, but it failed to move above the $89.00-90.00 resistance zone.
Looking at the chart, the price traded as high as $89.15 and later started a downward move. It declined below the $86.00 level and also broke the 50% Fib retracement level of the last leg from the $83.31 low to $89.15 high.
However, litecoin buyers were able to protect declines near the $84.00 support zone. More importantly, the LTC/USD pair stayed above yesterday’s highlighted important bullish trend line with support at $84.00 on the hourly chart.
The price is currently testing the 76.4% Fib retracement level of the last leg from the $83.31 low to $89.15 high. Should there be a break below the trend line, the price may perhaps test the $83.00 support and the 100 hourly simple moving average.
The stated $83.00 support holds a lot of significance since it was a resistance earlier. Below this, the price may extend the current decline towards the $80.00 level.
On the flip side, if litecoin price recovers above the $86.00 level, it could retest the $89.00-90.00 resistance zone. A successful break above $90.00 is needed for more gains in the near term.
The current price action suggests that LTC/USD is struggling to hold the $84.00 support. Therefore, buyers must monitor the $83.00-84.00 support zone very carefully in the short term.