Litecoin Price Analysis: LTC/USD Back In Bullish Zone
Litecoin price moved higher after forming a base near $53.00 against the US Dollar. LTC/USD is now well above $55.00 and eyeing further gains.
Key Talking Points
Litecoin price formed a solid support base near $53.00 and started an upside ride against the US Dollar.
There was a break above a bearish trend line with resistance at $54.50 on the hourly chart of LTC/USD.
The pair has now turned buy on dips near the $56.00 and $55.00 support levels in the short term.
Litecoin Price Forecast
There were a couple of swing moves in Litecoin price towards the $53.00 level against the US Dollar. However, sellers failed to push the price below $53.00 for a test of the all-important $50.00 handle.
As a result, there was a support formed at $53.00-53.10. Later, the price started an upside move and broke many hurdles such as $54.00, $55.00 and the 100 hourly simple moving average. Moreover, there was also a break above a bearish trend line with resistance at $54.50 on the hourly chart of LTC/USD (data feed from Kraken).
The pair traded as high as $58.03 recently and is currently consolidating gains. An initial support on the downside is around the 23.6% Fib retracement level of the last wave from the $53.15 low to $58.03 high.
However, the most important support for buyers is near $55.50. It is the 50% Fib retracement level of the last wave from the $53.15 low to $58.03 high and also coincides with the 100 hourly simple moving average.
Therefore, any dips from the current levels toward $56.00 and $55.00 can be seen as a decent buying opportunity as long as there is no close below the 100 hourly SMA.
On the upside, a break of the recent high at $58.03 would open the doors for a test of the $60.00 handle. Above $60.00, the next major hurdle is at $62.50.
The hourly RSI for LTC/USD is in the bullish zone and suggesting a short term correction. However, any corrections toward $56.00 should be limited considering the current market sentiment.