Litecoin (LTC) at a Crossroads: Can It Rebound and Rally?
Litecoin price is consolidating above $80.00 against the US Dollar. If LTC breaks above the $88.00 resistance zone, it may start a fresh rise.
- Litecoin/USD exchange rate is showing positive signs from the $80 support zone.
- The price is currently below $88 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance at $86.00 on the hourly chart of the LTC/USD pair (data via Kraken).
- If the price breaks above the $88.00 resistance zone, a fresh increase could start.
Litecoin price ushered in a new round of gains
Litecoin started a fresh rise after forming a base above $85. LTC price broke above the $88 and $90 resistance levels to enter positive territory, e.g. Bitcoin and Ethereum.
The price increased by more than 10% and even broke the $95 level. A high of $98 was formed before the pullback. The price fell below $88 and tested $82. A low was formed at $81.69, and the price is currently consolidating losses below the 23.6% Fibonacci retracement level of the swing high from $94.71 to $81.69 low.
Litecoin is currently trading below $88 and below the 100 simple moving average (4-hours). On the upside, immediate resistance lies near the $85.00 area. There is also a key bearish trend line forming with resistance at $86.00 on the hourly chart of the LTC/USD pair.
The next major resistance is near $88, the 50% Fibonacci retracement level of the downward move from the $94.71 swing high to $81.69 low. If there is a clear break above the $88 resistance, the price could start another strong rise. In the above scenario, the price may continue higher towards the $92 and $95 levels. If there is further upside, the price of LTC may rise towards the $100 resistance zone.
LTC loses more?
If Litecoin price fails to break above the $86 resistance, it may fall again. Initial support on the downside is near $82.
The next major support is forming near $80, below which there is a risk of a move towards the $75 support. Any further losses could push the price towards the $68 support.
Technical indicators:
Hourly MACD – The MACD is now losing speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for LTC/USD is below the 50 level.
The main support level – $82.00, followed by $80.00.
The main resistance levels – $86.00 and $88.00.
