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Litecoin's price reorganized recently after forming a support base for $ 31.00. LTC tested the resistance of $ 40.00 and could continue to rise towards $ 50.00
Key points of conversation
- The price of Litecoin has finally risen higher towards the resistance of $ 40.00 (Kraken data feed) against the US dollar.
- There is an uptrend line formed with support for $ 37.50 on the hourly chart.
- The LTC price remains well supported and could extend earnings above $ 40.00 and $ 44.00.
Litecoin price analysis
Last week we discussed a possible move upwards of $ 40.00 in the litecoin price compared to the US dollar. The LTC / USD pair gained momentum, broke the resistance by $ 35.00 and tested the $ 40.00 barrier.
Looking at the chart, the LTC price stabilized above the resistance of $ 35.00 and the simple moving average at 100 hours. A new annual maximum was formed at $ 40.06 and thereafter the price started a downward correction.
It has moved below the level of $ 38.50 and the Fib retracement level of 23.6% of the last wave from the minimum of $ 34.21 to that of $ 40.06. However, the decline was protected by the $ 37.80-38.00 support area and the price is currently consolidating gains.
On the upside, there is a short-term resistance at $ 39.00 and a bearish link trend line on the hourly chart. A break above the resistance levels $ 39.00 and $ 40.00 can trigger further gains in the short term.
The next key resistance is $ 42.00, beyond which the price could be traded at the $ 44.00 level. The main resistance above $ 44.00 is at $ 50.00.
On the other hand, if there is an extended correction, the price could test the support of $ 37.50 or the 50% fiber retracement level of the last wave from the $ 34 minimum, 21 to that of $ 40.06. Furthermore, there is an uptrend line formed with support for $ 37.50 on the same chart.
Overall, the litecoin price has clearly gained bullish momentum above $ 38.00 and LTC could continue to move higher towards the $ 42.00 or $ 44.00 level. On the negative side, the main supports are $ 38.00 and $ 37.50.
Market data is provided by TradingView.
