Litecoin price declined and tested the $56.00 support against the US Dollar. LTC/USD is currently correcting higher towards the $59.00-60.00 resistance.
Key Talking Points
· Litecoin price declined recently and tested the key $56.00 support (Data feed of Kraken) against the US Dollar.
· Yesterday’s highlighted important bearish trend line is intact with current resistance at $59.30 on the hourly chart of the LTC/USD pair.
· LTC price must clear the $59.00 and $60.00 resistance levels to gain traction in the near term.
Litecoin Price Forecast
Yesterday, we saw a downside move below the $60.00 support in litecoin price against the US dollar. The LTC/USD pair traded towards the next major support at $56.00, which held further declines.
Looking at the, LTC price found strong buying interest near the $56.00-56.50 support area. Later, the price started an upside correction and traded above the $57.50 level.
There was a break above the 23.6% Fib retracement level of the last slide from the $61.44 high to $56.51 low. However, the price is now approaching a crucial resistance area near the $59.00 and $60.00 levels.
More importantly, yesterday’s highlighted important bearish trend line is intact with current resistance at $59.30 on the hourly chart of the LTC/USD pair. The same trend line coincides with the 50% Fib retracement level of the last slide from the $61.44 high to $56.51 low.
Additionally, the 100 hourly simple moving average is positioned near the $59.50 level. Therefore, buyers are likely to struggle a lot near the trend line, 100 hourly SMA, and the $60.00 resistance.
If buyers succeed in pushing the price above the $60.00 resistance, it is likely to move back in a positive zone towards the $61.50 and $63.00 levels in the near term. On the other hand, if sellers protect gains above $60.00, there may possibly a fresh decline towards the $56.50 support.
Overall, litecoin price must stay above the $56.50 and $56.00 support levels to recover above the $60.00 barrier in the coming sessions.
The market data is provided by TradingView.