Litecoin price traded above the $125 level before starting a correction against the US Dollar. LTC/USD is currently trading near a major support at $120-122.
Key Talking Points
· Litecoin price started a downside correction after trading towards $128 (Data feed of Kraken) against the US Dollar.
· There was a break below a connecting bullish trend line with support at $125.00 on the hourly chart of the LTC/USD pair.
· The pair is currently trading near a major support at $122, which must hold losses in the near term.
Litecoin Price Forecast
There were solid bullish moves in litecoin price above the $120 resistance against the US dollar. The LTC/USD pair broke to the upside recently and traded above the $122 and $125 resistance levels.
Looking at the chart, the price traded close to the $128 level and a high was formed at $127.94. Later, the price started a downside correction and moved below the $125.50 level.
During the decline, there was a break below the 38.2% Fib retracement level of the last wave from the $116.71 low to $127.94. More importantly, there was a break below a connecting bullish trend line with support at $125.00 on the hourly chart of the LTC/USD pair.
The pair is now testing a major support area near $122.00, which was a resistance earlier. It is likely to hold declines since it is close to the 50% Fib retracement level of the last wave from the $116.71 low to $127.94.
If litecoin buyers fail to keep the price above $122.00 and the 100 hourly simple moving average, there could be more losses. The next support in the mentioned scenario is near the $119-120 zone.
On the flip side, if litecoin price gain traction and bounces back from $122, then it will most likely move back above the $125 level.
The overall price action is positive as long as the price is above $122 and the 100 hourly SMA. Resistances are at $125.00, $128.00 and $130.00.
The market data is provided by TradingView.