Litecoin price is up over 10% and trading above 5 against the US Dollar. LTC could continue to rise toward the 0 resistance zone in the near term.
- Litecoin is showing positive signs from the support zone against the US Dollar.
- The price is now trading above 5 and the 100 simple moving average (4 hours).
- There is a key bullish trend line forming with support at 1.50 on the 4-hour chart of the LTC/USD pair (data feed from Kraken).
- The price could continue to rise toward the 0 level unless it breaks the 0 support.
Litecoin Price Gains Bullish Momentum
In the past couple of days, Litecoin gained pace and outperformed Bitcoin and Ethereum. LTC price formed a base above the level and started a decent increase.
There was a break above the and resistance levels. The bulls even pushed the price above 0. There was a clear move above the 76.4% Fib retracement level of the downward move from the 5.71 swing high to the .00 low. A new multi-week high was formed at 2.49 and the price is now consolidating gains.
top near .40 before it started a fresh decline.
Litecoin is now trading above and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support at 1.50 on the 4-hour chart of the LTC/USD pair.
On the upside, immediate resistance is near the 2.50 zone. It is near the 1.236 Fib extension level of the downward move from the 5.71 swing high to the .00 low. The next major resistance is near the 5 level. If there is a clear break above the 5 resistance, the price could start another strong increase.
Source: LTCUSD on TradingView.com
In the stated case, the price is likely to continue higher toward the 0 and 2 levels. Any more gains might send LTC’s price toward the 2 resistance zone.
Are Dips Supported in LTC?
If Litecoin price fails to clear the 5 resistance level, there could be a downside correction. Initial support on the downside is near the 5 level.
The next major support is forming near the 0 level, below which there is a risk of a move toward the support. Any further losses may perhaps send the price toward the support.
Technical indicators:
4-hour MACD – The MACD is now gaining pace in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for LTC/USD is above the 65 level.
Major Support Levels – 5 followed by 0.
Major Resistance Levels – 5 and 0.