27 minutes ago | Azeez Mustapha
|Key LTC resistance levels:||$120, $130, $140|
|Key LTC support levels:||$60, $50, $40|
*Price at the time of writing
LTCUSD Price Analysis
LTCUSD Long-term bias: Bearish
On June 22, Litecoin reached its peak price at $140, with the bulls failing to break above the supply zone. Consequently, there was strong selling pressure as the market dropped to $80 and below. On July 17, the price corrected the previous highs, but the bulls were resisted at the $100 supply zone.
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Then, the coin continued its gradual slide to the low at $62. Again, the market fell to the critical support as the bulls were on hand to provide buying pressure. Presently, the coin is facing resistance at the $72 supply zone.
Daily Chart Indicators
On July 8, the LTC/USD pair commenced its downward move after the blue exponential moving average crossed below the red exponential moving average signaling the downward trend. The 12-day EMA (blue line) acts as a resistance to the price of Litecoin. The crypto’s price made two attempts and broke the 12-day EMA but failed to break the 26-day EMA (red Line).
Also, the LTC price has reached the 60% range of the daily stochastic indicato, which is signaling that Litecoin is in a bullish momentum. If the bulls break the upper trend line, Litecoin may resume its uptrend. Conversely, if the bears break the lower trend line, the crypto’s price is likely to further depreciate.
LTC/USD Medium-term bias: Bullish
On August 30, the price of Litecoin fell to the $62 demand zone and commenced an upward move. The crypto’s price reached the $70 supply zone and was resisted. There was price correction to the low of $64 as the bulls resumed another upward move. The bulls have broken the previous resistance at $70 supply zone as the market continues its upward move.
4-hour Chart Indicators Reading
On August 30, the Fibonacci retracement level was drawn at the lower swing of $62 demand zone, while the upper swing was terminated on September 3 at the $69 supply zone. The market retraced and reached a low of $64 on September 5. This indicates that the upward move is likely to continue.
From my calculation, the body of the retraced candlestick touched the 38.2% Fib. retracement level (indicated by a horizontal line). This indicates that if the upward move resumes, the market will target the 261.80 Fib. extension level. However, the market will, first of all, reach the 161.8 extension level and pause before resuming the bullish trend to reach the 261.8 Fib. extension level.
General Outlook for LTC/USD
The cryptocurrency is likely to rise the moment the bulls break the $72 resistance zone. The RSI is sitting at 60, indicating that the market is rising as the price is in the bullish trend zone. From the price action, the candlesticks are above the exponential moving averages indicating that the price of Litecoin is rising.
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