Litecoin price started a correction and moved above $54.00 against the US Dollar. LTC/USD is currently trading near a crucial hurdle at $56.50-58.00, which is capping upsides.
Key Talking Points
· Litecoin price corrected a few points after trading as low as $49.40 (Data feed of Kraken) against the US Dollar.
· This week’s followed key bearish trend line is acting as a hurdle near $58.00 on the hourly chart of the LTC/USD pair.
· LTC is facing many important resistances near $56.50, 100 hourly SMA and the $58.00 level.
Litecoin Price Forecast
There was a decent support base formed near the $49.50 level in litecoin price against the US dollar. The LTC/USD pair started an upside move and corrected above the $52.00 and $54.00 levels.
Looking at the, LTC price found bids near the $50.00 level and a connecting support trend line. The price recovered and moved above the $54.50 and $55.00 resistance levels.
The upside move was positive as the price traded above the 50% Fib retracement level of the last main drop from the $60.60 swing high to $49.50 swing low. However, the price is currently facing a lot of hurdles near the $56.50 and $58.00 levels.
The 100 hourly simple moving average along with the 61.8% Fib retracement level of the last main drop from the $60.60 swing high to $49.50 swing low is near $56.50. Above this, there is a significant resistance near $58.00.
More importantly, this week’s followed key bearish trend line is acting as a hurdle near $58.00 on the hourly chart of the LTC/USD pair. Therefore, it won’t be easy for litecoin buyers to break the $56.50 and $58.00 resistances.
If they succeed, the price could move above the $60.00 level in the near term. On the other hand, if they fail, the price may drop back towards the $52.00 and $50.00 support levels.
Overall, litecoin price is slowly recovering, but it is facing a tough challenge near $58.00, above which, LTC/USD will most likely move back into a positive zone.
The market data is provided by TradingView.