Litecoin Price Analysis: LTC/USD Struggling to Break $60

Litecoin price failed to hold gains above $60.00 and declined against the US Dollar. LTC/USD tested the $55.00 support area and it is currently correcting higher.

Key Talking Points

·         Litecoin price found support near the $55.00 and $55.50 support levels (Data feed of Kraken) against the US Dollar.

·         There is a major bullish trend line formed with support at $57.00 on the hourly chart of the LTC/USD pair.

·         LTC could decline a few points below $57.00 before it started a fresh upward move in the near term.

Litecoin Price Forecast

There was a bearish reaction from the $62.20 level in litecoin price against the US dollar. The LTC/USD pair declined and broke the $60.00 support zone to test the next support at $55.00.

Looking at the chart, LTC price traded close to the $55.00 support and formed a low at $55.31. Later, it corrected higher and broke the 23.6% Fib retracement level of the last drop from the $62.19 high to $55.31 low.

It also moved past the $58.00 level and the 100 hourly simple moving average. However, the upside move was capped by the 50% Fib retracement level of the last drop from the $62.19 high to $55.31 low. It seems like the pair was not able to break the $60.0 resistance zone.

At the moment, the price is declining and is trading near the $57.50 level. More importantly, there is a major bullish trend line formed with support at $57.00 on the hourly chart of the LTC/USD pair.

The same trend line coincides with the 100 hourly SMA. Should there be a break below the trend line and $57.00, the price may revisit the $55.00 support zone. However, downsides are likely to be limited considering the current technical structure above $55.00.

On the upside, litecoin price (LTC) has to move above the $60.00 resistance area to gain bullish momentum. Above this, the price is likely to retest the $62.20 swing high, which is the next resistance for buyers.

The market data is provided by TradingView.

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