- Litecoin price is correcting lower after trading towards the $75.00 level against the US Dollar.
- LTC price is likely to remain supported near the $68.00 and $66.00 levels.
- There is a crucial bullish trend line forming with support near $66.50 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair could start a fresh increase if it breaks the $70.00 and $72.00 resistance levels.
Litecoin price is showing positive signs against the US Dollar, while bitcoin is correcting lower. LTC remains buy on dips as long as there is no close below the $65.00 support.
Litecoin Price Analysis
After forming a support base above $62.00, litecoin price started a solid upward move against the US Dollar. The LTC/USD pair broke the $70.00 resistance level and the 55 simple moving average (4-hours). Finally, there was a break above the $72.00 level, but the price failed to continue higher. A swing high was formed near $73.37 before the price started a downside correction.
There was a break below the $72.00 level plus the 50% Fib retracement level of the last leg from the $63.98 low to $73.37 high. Moreover, there was a spike below the $70.00 level. However, the decline was protected by the $68.00 support area. The 61.8% Fib retracement level of the last leg from the $63.98 low to $73.37 high is also a decent support base.
More importantly, the 55 simple moving average (4-hours) is acting as a strong support near the $68.00 and $69.00 levels. Below the $68.00 support, there is a crucial bullish trend line forming with support near $66.50 on the 4-hours chart of the LTC/USD pair. Below the trend line support, the price is likely to extend its decline towards the $65.00 support area.
A successful close below the $65.00 support could start a fresh bearish decrease in the near term. On the upside, an immediate resistance is near the $70.00 level and a bearish trend line. A successful break above the $70.00 and $72.00 resistance levels might start a decent increase. The next key resistance is near $75.00, above which the price could grind higher towards $80.00.
Looking at the chart, litecoin price is trading nicely above a couple of important supports near $68.00 and $66.00. If there is a downside break below $65.00, the price could accelerate declines. Conversely, there are high chances of a fresh increase above $70.00 and $72.00.
Technical indicators
4 hours MACD – The MACD for LTC/USD is losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is slowly moving lower below the 50 level.
Key Support Levels – $68.00 and $66.50.
Key Resistance Levels – $70.00 and $72.00.