Litecoin Price Analysis: LTC/USD is Struggling to Bounce Back
Litecoin price is holding the $204 support level against the US Dollar. LTC/USD needs to move above the $210-212 resistance to challenge sellers near $218.
Key Talking Points
· Litecoin price succeeded in holding the $204-205 support zone (Data feed of Kraken) against the US Dollar.
· There is a short-term bearish trend line forming with resistance at $210 on the hourly chart of the LTC/USD pair.
· A break above the $210 resistance could push the pair towards the $218 and $220 resistance levels.
Litecoin Price Forecast
There was a minor downside reaction below $210 recently in litecoin price against the US dollar. The LTC/USD pair was not able to stay above the $208 support and declined towards the $204 support.
The recent low formed was $205.96 and the pair is currently correcting higher. It has moved above the 23.6% Fib retracement level of the last drop from the $216.41 high to $205.96 low.
However, there is a major resistance near $210, which is preventing further recoveries. There is also a short-term bearish trend line forming with resistance at $210 on the hourly chart of the LTC/USD pair.
The trend line resistance is close to the 38.2% Fib retracement level of the last drop from the $216.41 high to $205.96 low. Lastly, the 100 hourly simple moving average is positioned near $210.
Therefore, the $210 area could act as a major resistance for the next move in LTC. Once there is a proper break and close above the mentioned $210 resistance, the price may continue to rise towards the next hurdle at $218 and $220.
On the flip side, if the price fails to move above the $210 resistance, it may retest the recent swing low of $205.96. In the mentioned case, the price could even test a crucial support at $204.
The overall bias is slightly bearish as long as the price is below $210. It seems like litecoin is consolidating above the $200 level and is preparing for the next move.
Trade safe traders and do not overtrade!
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