Litecoin Price Analysis: LTC/USD’s Bullish Case Scenario
Litecoin price jumped above the $54.00 resistance before sliding back below $53.50 against the US Dollar. LTC/USD could dip one more time before an upward move.
Key Talking Points
Litecoin price is currently placed nicely above the $52.50 support level (Data feed of Kraken) against the US Dollar.
There is a short term contracting triangle forming with support at $52.80 on the hourly chart of the LTC/USD pair.
LTC price could test the $52.50 and $52.00 support levels before an upward move.
Litecoin Price Forecast
There was a nasty upward move in litecoin price above the $54.00 resistance level against the US dollar. The LTC/USD pair traded above the $56.00 resistance before sellers appeared near the $58.00 level.
Looking at the chart, LTC price formed a top near $58.09 and later started a sharp downside move. The price declined and broke the $56.00 and $55.00 support levels. The decline was substantial as the price declined below the $54.00 support as well.
There was a break below the 61.8% Fib retracement level of the last wave from the $50.85 low to $58.09 high. However, losses were protected by the $52.50 support and the 100 hourly simple moving average.
Moreover, the 76.4% Fib retracement level of the last wave from the $50.85 low to $58.09 high also acted as a support. At the moment, the price is trading above the $52.50 support and with a positive bias.
More importantly, there is a short term contracting triangle forming with support at $52.80 on the hourly chart of the LTC/USD pair. The pair is likely to make the next move either above $54.00 or below $52.00.
The current price action indicates that there could be a minor dip towards the $52.00 support before the price jumps above the $53.50 and $54.00 resistance levels.
Overall, litecoin price is placed in a bullish zone as long as there is no close below the $52.00 support. On the upside, key resistances are at $54.00 and $56.00.