- Litecoin price started a downward correction after testing the $ 65.00 resistance against the US dollar.
- The LTC price is currently testing the support of $ 58.00 and the simple moving average of 55 (4 hours).
- There is a key contraction triangle forming with resistance near $ 60.00 on the 4-hour chart of the LTC / USD pair (data feed from Coinbase).
- The pair is likely to resume its rise if it breaks out of the $ 60.00 resistance level in the short term.
Litecoin’s price is correcting gains and trading close to $ 58.00 against the US dollar, while bitcoin has jumped towards $ 16k. The LTC price could start a new rise if it stabilizes above $ 60.00.
Litecoin price analysis
After a steady rise, bitcoin, Ethereum, ripple, and litecoin corrected down against the US dollar. Previously, the LTC price gained bullish momentum above the $ 60.00 resistance level and 55 simple moving average (4 hours).
However, the price struggled to break out of the $ 65.00 resistance zone. It formed a high near $ 64.91 and the price initiated a downward correction. A break below the $ 62.00 support has occurred, plus the price traded below the 23.6% Fib retracement level of the upward move from the low of $ 51.66 to the high of $ 64, 91.
The price is now testing the support of $ 58.00 and the simple moving average of 55 (4 hours). It also maintains the 50% Fib retracement level of the upward move from the low of $ 51.66 to the high of $ 64.91.
More importantly, a key contraction triangle with resistance near $ 60.00 appears to be forming on the 4-hour chart of the LTC / USD pair. If there is a clear break above the resistance of the triangle at $ 60.00, the price could resume its upward movement.
The next major resistance is near the $ 62.00 level, above which the bulls are likely to aim for a break above the key $ 65.00 resistance zone.
Conversely, the price breaks through the simple moving average 55 (4 hours) and the triangle support at $ 57.00. The first major support is near the $ 55.00 level. Any further losses could lead the price towards the main support of $ 51.50.
Looking at the chart, the litecoin price clearly holds the key support of $ 57.00 and the simple moving average 55 (4 hours). Overall, the price is likely to resume rising if it breaks out of the $ 60.00 resistance level in the near term.
4-Hour MACD – The MACD for LTC / USD is currently gaining momentum in the bearish zone.
4-Hour RSI (Relative Strength Index) – The RSI for LTC / USD is now below the 50 level.
Key Support Levels: $ 58.00 and $ 57.00.
Key resistance levels: $ 60.00 and $ 62.00.