Litecoin price is consolidating above the $80.00 level against the US dollar. If LTC breaks out of the $88.00 resistance area, it could start a new increase.
- Litecoin is showing positive signs at the $80 support zone against the US dollar.
- The price is currently trading below $88 and the 100-hour simple moving average.
- On the hourly chart of the LTC/USD pair (data feed from Kraken), there is a major bearish trendline forming at resistance $86.00.
- A break out of the $88.00 resistance area could cause the price to start a new rally.
Litecoin Price Eyes Fresh Rise
After forming a base above $85, Litecoin started a new rally. LTC price broke the $88 and $90 resistance levels and moved into positive territory like Bitcoin and Ethereum.
The price rose by more than 10% and even reached the $95 level. A high was formed at $98 before a downward trend took place. The price fell below $88 and tested $82. A low was formed at $81.69 and the price is currently consolidating losses below the 23.6% Fib retracement level moving down from the $94.71 swing high to the $81.69 low.
Litecoin is currently trading below $88 and the 100 simple moving average (4-hours). On the other hand, immediate resistance is located near $85.00. On the hourly chart of the LTC/USD pair, there is also a major bearish trend line forming with resistance at $86.00.
The next major resistance is near the $88 level or the 50% Fib retracement level of the downside move from the $94.71 swing high to the $81.69 low. If there is a clear break above the $88 resistance, the price could begin a strong rise once again. As stated, the price is likely to continue higher towards the $92 and $95 levels. If more gains occur, the price of LTC may head towards the $100 resistance area.
Will there be more losses in LTC?
Another decline could occur if Litecoin price fails to clear the $86 resistance level. Initial support for the downside is near the $82 level.
The next major support is forming near $80, below which there is a risk of a move towards $75 support. Any further losses could push the price towards the $68 support level.
Technical indicators:
Hourly MACD – MACD is now losing speed in bearish territory.
Hourly RSI (Relative Strength Index) – The RSI for LTC/USD is below the 50 level.
Key support levels – $82.00 followed by $80.00.
Key resistance levels – $86.00 and $88.00.