Litecoin price traded above the $82 resistance before correcting lower against the US Dollar. LTC/USD is positioned nicely above $78.00 for more gains in the near term.
Key Talking Points
- Litecoin price gained traction and traded towards the $84.00 level recently (Data feed of Kraken) against the US Dollar.
- There is a short-term declining channel formed with resistance at $80.00 on the hourly chart of the LTC/USD pair.
- The pair is likely to break the channel resistance and $82.00 to gain upside momentum.
Litecoin Price Forecast
There was a sharp upside move this past week from the $74.00 swing low in litecoin price against the US dollar. The LTC/USD pair jumped higher and broke a few resistances like $80.00 and $82.00.
Looking at the chart, the price traded towards the $85.00 level and formed a high at $84.07. Later, a downside correction was initiated and the price corrected below the $82.00 level.
It broke the 23.6% Fib retracement level of the last wave from the $72.70 low to $84.07 high. It opened the doors for more declines and the price tested the $78.00 support. However, the declines were protected by the $78.00 support and the 100 hourly simple moving average.
More importantly, the 50% Fib retracement level of the last wave from the $72.70 low to $84.07 high also acted as a support. At the moment, there is a short-term declining channel formed with resistance at $80.00 on the hourly chart of the LTC/USD pair.
The pair is moving higher and it seems like it could break the channel resistance at $80.00. Above this, the price must break the $82.00 and $84.00 resistance levels to continue higher.
The next hurdle for buyers is near the $90.00 level. On the flip side, if litecoin price moves down, the $78.00 support may perhaps play an important role.
If LTC/USD fails to stay above the $78.00 support and the 100 hourly SMA, it will most likely move back in the bearish zone.
The market data is provided by TradingView.