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Litecoin price is forming a strong support near the $29.80 level against the US Dollar. LTC could start a major uptrend as long as it is consolidating above the $29.80 support.
Key Talking Points
- Litecoin price is consolidating above the key $29.80 support level (Data feed of Kraken) against the US Dollar.
- There is a major bearish trend line in place with resistance at $31.95 on the 4-hour chart.
- LTC price is likely preparing forming a crucial bottom above $29.50 for the next bullish wave.
Litecoin Price Analysis
During the past few days, litecoin price traded in a broad range above the $29.80 support against the US dollar. The LTC/USD pair made a few attempts to clear the $33.00 resistance, but buyers failed to gain traction.
Looking at the 4-hour chart, LTC price tested the $29.80 support level on a few occasions. The recent low was formed at $29.84 and the price is currently consolidating.
An initial resistance is near $31.00 and the 23.6% Fib retracement level of the last decline from the $34.00 high to $29.84 low. The next resistance is near the $31.50 level and the 100 simple moving average (4-hour).
Besides, the 50% Fib retracement level of the last decline from the $34.00 high to $29.84 low is near $31.92. More importantly, there is a major bearish trend line in place with resistance at $31.95 on the same chart.
Therefore, a proper break above the trend line, 100 SMA, and $32.00 could open the doors for more gains in the near term. The next key resistance could be $33.00, above which the price may trade towards $35.00 and $36.00.
On the other hand, it litecoin price fails to break the trend line resistance and $32.00, there could be a fresh decline. On the downside, the main support is near the $29.80 level. If there is a bearish break below $29.80 and $29.50, the price may drop significantly towards the $26.00 and $25.00 levels in the coming days.
The market data is provided by TradingView.
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