Litecoin price formed a strong support near the $72.00 level and recovered against the US dollar. LTC broke the $74.00 resistance and it could accelerate gains along with bitcoin.
Key Talking Points
- Litecoin price remained well supported near the $71.50 and $72.00 levels (Data feed of Kraken) against the US Dollar.
- There was a break above a key bearish trend line with resistance near $74.00 on the hourly chart.
- LTC price is gaining bullish momentum and it could climb above the $77.00 and $78.00 levels.
Litecoin Price Analysis (LTC)
In the past two sessions, there was a strong rally in bitcoin, while gains were contained in altcoins such as Ethereum, EOS, litecoin and ripple against the US Dollar. Earlier, the LTC/USD pair declined below the $74.00 level and tested the $72.00 support area.
Looking at the chart, LTC price traded as low as $71.99 and later started consolidating in a range. It slowly moved above the 50% Fib retracement level of the last decline from the $77.92 high to $71.99 swing low.
Finally, the bulls came into action, resulting in gains above $74.00, $75.00, and the 100 hourly simple moving average. Besides, there was a break above a key bearish trend line with resistance near $74.00 on the hourly chart.
The pair even surged above the 76.4% Fib retracement level of the last decline from the $77.92 high to $71.99 swing low. It traded close to the $77.92 swing high and remains in a decent uptrend.
It seems like there could be a short term downside correction towards $75.00 or $74.00 before the price climbs higher again. On the upside, a break above the $78.00 resistance will most likely open the doors for a sharp upward move towards the $80.00, $82.00 and $84.00 levels.
Overall, litecoin price is slowly gaining momentum along with bitcoin. However, LTC price must break the $78.00 resistance level to continue higher. Conversely, if there is a downside correction, the price may find bids near the $75.00 or $74.00 level in the coming sessions.
The market d2ata is provided by TradingView.