- Litecoin formed a base above $40 before starting an upside correction against the US Dollar.
- LTC price is now trading above $50 and the 55 simple moving average (4-hours).
- There was a break above a major bearish trend line with resistance near $46.20 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair could gain bullish momentum if it clears the $55 resistance zone.
Litecoin price is recovering higher from $40 against the US Dollar, similar to bitcoin. LTC price could continue to move up if it clears the $55 resistance.
Litecoin Price Analysis
In the past few days, there was a minor recovery wave in bitcoin, ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC formed a base above the $40 level and started an upside correction.
There was a steady upward move above the $45 and $46 resistance levels. The price climbed above the 50% Fib retracement level of the downward move from the $65.40 swing high to $40.30 low. Besides, there was a break above a major bearish trend line with resistance near $46.20 on the 4-hours chart of the LTC/USD pair.
The price is now trading above $50 and the 55 simple moving average (4-hours). LTC is now facing a strong resistance near the $55 level.
The 61.8% Fib retracement level of the downward move from the $65.40 swing high to $40.30 low is also acting as a resistance. The next major resistance is near the $60 level. A clear move above the $55 level could pump the price above the $60 level. The next major resistance sits near the $65 level.
On the downside, an immediate support is near the $52.80 level. The next key support is near the $51.00 level. If there is a downside break below the $51 support, the price could accelerate lower towards the $46.20 level in the near term.
Looking at the chart, litecoin price is clearly trading above $50 and the 55 simple moving average (4-hours). Overall, the price could decline heavily if it fails to clear the $55 resistance zone.
Technical indicators
4 hours MACD – The MACD for LTC/USD is now gaining pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now above the 50 level.
Key Support Levels – $52.80 and $51
Key Resistance Levels – $55 and $60.
