- Litecoin price started a downside correction after testing the $65.00 resistance against the US Dollar.
- LTC price is currently testing the $58.00 support and the 55 simple moving average (4-hours).
- There is a key contracting triangle forming with resistance near $60.00 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair is likely to resume its rise if it clears the $60.00 resistance level in the near term.
Litecoin price is correcting gains and trading near $58.00 against the US Dollar, while bitcoin jumped towards $16k. LTC price could start a fresh increase if it settles above $60.00.
Litecoin Price Analysis
After a steady rise, bitcoin, Ethereum, ripple, and litecoin corrected lower against the US Dollar. Earlier, LTC price gained bullish momentum above the $60.00 resistance level and the 55 simple moving average (4-hours).
However, the price struggled to clear the $65.00 resistance zone. A high was formed near $64.91 and the price started a downside correction. There was a break below the $62.00 support, plus the price traded below the 23.6% Fib retracement level of the upward move from the $51.66 low to $64.91 high.
The price is now testing the $58.00 support and the 55 simple moving average (4-hours). It is also holding the 50% Fib retracement level of the upward move from the $51.66 low to $64.91 high.
More importantly, it seems like there is a key contracting triangle forming with resistance near $60.00 on the 4-hours chart of the LTC/USD pair. If there is a clear break above the triangle resistance at $60.00, the price could resume its upward move.
The next major resistance is near the $62.00 level, above which the bulls are likely to aim a break above the key $65.00 resistance zone.
Conversely, the price break the 55 simple moving average (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 $51.50 support.
Looking at the chart, litecoin price is clearly holding the key $57.00 support and the 55 simple moving average (4-hours). Overall, the price is likely to resume its rise if it clears the $60.00 resistance level in the near term.
Technical indicators
4 hours MACD – The MACD for LTC/USD is currently gaining momentum in the bearish zone.
4 hours 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.
