The price of Litecoin started a correction and moved above $ 54.00 against the US dollar. LTC / USD is currently trading near a crucial obstacle at $ 56.50-58.00, which is maximum.
Key Talking Points
· Litecoin's price corrected some points after trading at $ 49.40 (Kraken feed data) against the US dollar.
· This week the downtrend line followed by an obstacle near $ 58.00 on the hourly chart of the LTC / USD pair.
· LTC is faced with many major resistances close to $ 56.50, 100 hours of SMA and $ 58.00.
Litecoin Price Forecast
There was a decent support base formed near the $ 49.50 level in the litecoin price compared to the US dollar. The LTC / USD pair started an upward and corrected move above $ 52.00 and $ 54.00.
Looking at the chartthe LTC price found offers near the $ 50.00 level and a support trend line link. The price has recovered and has moved above the resistance levels $ 54.50 and $ 55.00.
The upward move was positive as the price traded above the 50% Fiber retracement level of the last major decline from the low of $ 60.60 to a minimum of $ 49.50. However, the price is facing a lot of obstacles near the levels of $ 56.50 and $ 58.00.
Simple 100-hour moving average along with the Fib retracement level of 61.8% of the last major decline from $ 60.60 high swing to $ 49.50 low swinging is close to $ 56.50 . Above this, there is a significant resistance close to $ 58.00.
More importantly, the key downtrend line followed this week is acting as an obstacle close to $ 58.00 on the hourly chart of the LTC / USD pair. Therefore, it will not be easy for litecoin buyers to break the resistance from $ 56.50 and $ 58.00
If they succeed, the price could move above the $ 60.00 level in the short term. On the other hand, if they fail, the price may fall to $ 52.00 and support $ 50.00.
Overall, the litecoin price is slowly recovering, but it is facing a tough challenge near $ 58.00, beyond which, LTC / USD will most likely return to a positive zone.
Market data is provided by TradingView.