Litecoin price gained bullish momentum and broke the $50.00 and $53.00 resistances against the US Dollar. LTC/USD remains well supported on dips near $52.00.
Key Talking Points
- Litecoin price traded higher recently and tested the $55.00 zone (Data feed of Kraken) against the US Dollar.
- There is a connecting bullish trend line in place with support at $51.60 on the hourly chart of the LTC/USD pair.
- LTC price is currently correcting lower, but dips remain supported near $52.00 and $51.60.
Litecoin Price Forecast
In the last analysis, we discussed that litecoin price could continue to trade higher above $50.00 against the US dollar. The LTC/USD pair gained momentum and broke the $52.00 and $53.00 resistance levels.
Looking at the chart, LTC price even settled above the $52.00 resistance and the 100 hourly simple moving average. It traded above the $55.00 level and formed a high at $55.78. Later, the price started a downside correction and traded below $54.00.
There was a break below the 50% Fib retracement level of the recent wave from the $50.34 low to $55.78 high. However, there are many supports on the downside near the $52.00 level, which was a resistance earlier.
Moreover, there is a connecting bullish trend line in place with support at $51.60 on the hourly chart of the LTC/USD pair. Above the trend line, the 61.8% Fib retracement level of the recent wave from the $50.34 low to $55.78 high is a decent support near $52.42.
Therefore, if the pair continues to correct lower, it is likely to find a strong support near the $52.00 level. On the upside, an initial resistance is near $54.00, above which the price could revisit the $55.00-55.50 zone.
Overall, litecoin price is back in a positive zone as long as it is above the $52.00 level, there could be more gains. If there is a break below $52.00, there are high chances of an extended slide towards the $50.00 handle in the near term.
The market data is provided by TradingView.