Litecoin (LTC) Price Analysis: Trading Near Key Make-or-Break Levels
- Litecoin price declined below the $60.00 level before it found support near $56.00 against the US Dollar.
- LTC price is currently correcting higher above $60.00, but it is facing a lot of hurdles.
- There is a major declining channel is forming with resistance near $61.80 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair could either rally towards the $68.00 level or it might restart its decline below $58.00.
Litecoin price is trading near a major breakout zone against the US Dollar, similar to bitcoin. LTC price must climb above $61.80 and $62.00 to start a fresh increase.
Litecoin Price Analysis
This past week, we saw a steady decline in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. LTC price broke the main $65.00 and $62.00 support levels to enter a bearish zone.
Moreover, the price spiked below the $60.00 support and settled below the 55 simple moving average (4-hours). It traded as low as $56.00 and is currently correcting higher. The bulls were able to push the price above the $58.00 level.
There was a break above the 60.00 pivot level. However, the price is now facing a strong resistance near the $61.80 and $62.00 levels.
More importantly, there is a major declining channel is forming with resistance near $61.80 on the 4-hours chart of the LTC/USD pair. It coincides with the 23.6% Fib retracement level of the downward move from the $80.72 high to $56.00 low.
The 55 simple moving average (4-hours) is also near the $62.00 area. Therefore, an upside break above the $62.00 resistance could open the doors for more gains. A successful break above $62.00 might push the price towards the $68.00 resistance.
The 50% Fib retracement level of the downward move from the $80.72 high to $56.00 low could act as a major hurdle for the bulls near the $68.00 level. Any further gains may perhaps call for a push above $70.00.
Conversely, the price might fail to continue above $61.80 and $62.00. In the mentioned case, the price is likely to resume its decline below $58.00 and $56.00.
Looking at the chart, litecoin price is clearly trading near a crucial juncture and it could either rally towards the $68.00 level or it might restart its decline below $58.00.
4 hours MACD – The MACD for LTC/USD is slowly gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now close to the 50 level.
Key Support Levels – $58.00 and $56.00.
Key Resistance Levels – $62.00 and $68.00.
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