HomeAltcoin NewsLitecoin (LTC) Price Analysis: Approaching Next Crucial Break

Litecoin (LTC) Price Analysis: Approaching Next Crucial Break

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  • Litecoin price is slowly recovering and trading above the $36.50 support against the US Dollar.
  • LTC price is facing a strong resistance near the $41.00 area.
  • There is a major contracting triangle forming with resistance near $40.50 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
  • The pair could either start a strong rally above $41.00 or it might dive towards $32.50.

Litecoin price is likely preparing for the next major move against the US Dollar, similar to bitcoin. LTC price might start a strong rally if it clears the $41.00 resistance area.

Litecoin Price Analysis

In the past few days, there was a decent recovery in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC price formed a support base above $32.52 and recently started an upside correction.

It broke the $35.00 resistance area and the 55 simple moving average (4-hours). The last swing high was formed near $43.96 and the recent low was near $34.13.

The price is currently rising and trading above the $38.00 level. There was a break above the 50% Fib retracement level of the downward move from the $43.96 high to $34.13 low. However, the price is now facing a strong resistance near $40.80 and $41.00.

There is also a major contracting triangle forming with resistance near $40.50 on the 4-hours chart of the LTC/USD pair. The triangle resistance is near the 76.4% Fib retracement level of the downward move from the $43.96 high to $34.13 low.

Therefore, an upside break above the triangle resistance and $41.00 may perhaps start a strong upward move in the near term.  The next key resistance is near $45.00, above which litecoin could rise towards $50.00.

On the downside an initial support is near the $36.50 level and the 55 simple moving average (4-hours). A bearish break below the 55 SMA may perhaps start major decline below $35.00.

The next key support is near the $32.50 level, below which the bears are likely to aim a test of the $30.00 level in the near term.

Litecoin Price
Litecoin Price

Looking at the chart, litecoin price is clearly preparing for the next major move and it could either start a strong rally above $41.00 or it might dive towards $32.50 in coming sessions.

Technical indicators

4 hours MACD – The MACD for LTC/USD is losing momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now above the 50 level.

Key Support Levels – $36.50 and $32.50.

Key Resistance Levels – $41.00 and $45.00.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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