Key Talking Points
- Litecoin price found support above $110 and started trading in a range (Data feed of Kraken) against the US Dollar.
- There is a short-term bearish trend line forming with resistance at $114.80 on the hourly chart of the LTC/USD pair.
- The pair must clear the $114.80 and $115.00 resistance levels to move in a positive zone.
Litecoin Price Forecast
There was a sharp downside move yesterday from above $120 in litecoin price against the US dollar. The LTC/USD pair declined and tested the $110.00 support area.
A low was formed at $111.60 before the price started trading in a range. It seems like a consolidation phase is forming above the $110.00 support and the price is preparing for the next move.
However, it seems like the price is struggling to move above the $115.00 resistance. Moreover, the 23.6% Fib retracement level of the last downside wave from the $122.80 high to $111.60 low is also acting as a resistance.
More importantly, there is a short-term bearish trend line forming with resistance at $114.80 on the hourly chart of the LTC/USD pair. Therefore, the pair has to move above the $114.80 and $115.00 resistance levels to start a fresh upside wave.
Above the $115.00 resistance, the 100 hourly simple moving average at $116.00 is a key hurdle. Should there be a close above $116.00 and 100 hourly SMA, the price could retest the $122.00 swing high in the near term.
On the flip side, if the price fails to move above the $115.00-116.00 hurdle, it may perhaps retest the $110.00 support. The mentioned $110.00 zone is very significant and should protect further losses.
The overall bias is neutral, but it could soon turn positive if litecoin buyers manage to push the price above the $116.00 level in the near term.
Trade safe traders and do not overtrade!