Litecoin Price Analysis: LTC/USD Preparing for Next Break


Litecoin price is correcting higher and is currently above $55.00 against the US Dollar. LTC/USD could break the $58.00 resistance to gain bullish momentum.

Key Talking Points

·         Litecoin price averted a downside break and moved back above $55.00 (Data feed of Kraken) against the US Dollar.

·         There is a major contracting triangle formed with resistance near the $58.00 level on the hourly chart of the LTC/USD pair.

·         LTC may perhaps make the next move either above $58.00 or below $55.00 in the near term.

Litecoin Price Forecast

There was a decent support base formed near $50.00 in litecoin price against the US dollar. The LTC/USD pair recovered and moved above the $52.00 and $55.00 resistance levels.

Looking at the chart, LTC price corrected higher and settled above the $54.50 pivot level. There was also a close above the $55.00 level and the 100 hourly simple moving average.

Litecoin Price Analysis LTC USD

More importantly, the price broke the 50% Fib retracement level of the last decline from the $61.71 high to $49.40 low. However, there is a major resistance zone formed on the upside near the $58.00 and $60.00 levels.

Additionally, there is a major contracting triangle formed with resistance near the $58.00 level on the hourly chart of the LTC/USD pair. Should the price break the triangle resistance and $58.20, there could be more gains.

In the mentioned case, the price may well continue to move higher towards the $60.00 resistance. An intermediate resistance is near the 76.4% Fib retracement level of the last decline from the $61.71 high to $49.40 low.

However, once the price settles above the $58.00 level, it will most likely gain traction towards $60.00 and $61.70 levels. On the flip side, if there is a downside break below $55.00 and the 100 hourly SMA, the price might move back towards the $52.00 level.

To sum up, litecoin price (LTC) is preparing for the next move either above $58.00 or below $55.00 in the near term.

The market data is provided by TradingView.



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