HomeAltcoin NewsLitecoin (LTC) Price Analysis: Losses Reversal & Bullish Signals

Litecoin (LTC) Price Analysis: Losses Reversal & Bullish Signals

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  • Litecoin price is recovering nicely from the monthly low of $35.85 against the US Dollar.
  • LTC price is up around 10% and it even climbed above the $40.00 resistance area.
  • There is a crucial bearish trend line forming with resistance near $42.20 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
  • The pair could consolidate in the short term before it revisits the $42.00 resistance area.

Litecoin price is showing a few positive signs against the US Dollar, similar to bitcoin. LTC price could accelerate its recovery once it clears the $42.00 resistance area.

Litecoin Price Analysis

In the past 2-3 sessions, there was a nice recovery in bitcoin, Ethereum, ripple and litecoin against the US Dollar. Earlier, LTC price traded to a new monthly low near the $35.85 level.

Later, the price started a strong recovery and traded above the $37.00 and $38.00 resistance levels. Moreover, there was a break above the $40.00 resistance level.

Finally, the price rallied above the 50% Fib retracement level of the downward move from the $44.63 high to $35.85 low. It opened the doors for more gains above $41.00, but the price remained well below the 55 simple moving average (4-hours).

Besides, the 61.8% Fib retracement level of the downward move from the $44.63 high to $35.85 low acted as a strong resistance. More importantly, there is a crucial bearish trend line forming with resistance near $42.20 on the 4-hours chart of the LTC/USD pair.

The trend line resistance at $42.20 is also close to the 55 simple moving average (4-hours). Therefore, a clear break above the $42.00 and $42.20 resistance levels is needed for a trend reversal in litecoin in the medium term.

The next major resistance is near the $44.60 level, above which it could test the 1.236 Fib extension level of the downward move from the $44.63 high to $35.85 low at $46.71.

Conversely, the price could struggle to recover above the $42.00 and $42.20 resistance levels. In the mentioned case, the price might decline towards the $39.00 and $38.00 support levels. The main support is still near the $36.00 area, below which there is an open space up to $32.00.

Litecoin Price
Litecoin Price

Looking at the chart, litecoin price is showing a few positive signs above $40.00, similar to bitcoin above $7,000. However, the price must gain strength above $40.00 and $42.00 to continue higher in the near term.

Technical indicators

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

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

Key Support Levels – $39.00 and $38.00.

Key Resistance Levels – $42.00 and $42.20.

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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