Litecoin price tested the $90.00 resistance zone and started a downside correction against the US Dollar. LTC/USD is holding the $84 support, which is a positive sign.
Key Talking Points
- Litecoin price traded towards the $90.00 resistance recently where sellers appeared (Data feed of Kraken) against the US Dollar.
- There is a major bullish trend line formed with support at $83.00 on the hourly chart of the LTC/USD pair.
- The pair must stay above the $83.00 and $84.00 support levels to resume its upside move.
Litecoin Price Forecast
Yesterday, there was a short-term high formed just below the $90.00 level in litecoin price against the US dollar. The LTC/USD pair started a downside correction and declined from the $89.79 high.
Looking at the chart, the price corrected below the $86.00 support level. There was a break below the 50% Fib retracement level of the last wave from the $78.41 low to $89.79 high.
However, the downside move found buyers near the $84.00 support, which was a resistance earlier. There is also a major bullish trend line formed with support at $83.00 on the hourly chart of the LTC/USD pair.
The trend line support near $83.00 is positioned with the 100 hourly simple moving average. Moreover, the 61.8% Fib retracement level of the last wave from the $78.41 low to $89.79 high is near the $82.76 level to act as a support.
Therefore, it seems like the price must stay above the $83-84 support zone to hold the current correction. Below this, there is a risk of more losses towards the $80.00 level in the near term.
On the flip side, if the price recovers from the $83-84 support zone, it could resume its upside move. An initial resistance is at $86.00, above which, the price will most likely revisit the $90.00 resistance zone. The most important hurdles on the upside is at $100.00.
Overall, litecoin price is still supported for more gains as long as it is above the $83.00 support area.
The market data is provided by TradingView.