The Litecoin price is consolidating above the $80.00 level against the US dollar. LTC could start a new increase if it breaks the USD 88.00 resistance zone.
- Litecoin is showing positive signs from the $80 support zone against the US dollar.
- The price is now trading below $88 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance at $86.00 on the hourly chart of the LTC/USD pair (data feed from Kraken).
- The price could start a new increase if it crosses the USD 88.00 resistance zone.
Litecoin price looks fresh
After forming a base above $85, Litecoin started a new rise. The LTC price broke the USD 88 and USD 90 resistance levels and entered a positive zone, like that of Bitcoin and Ethereum.
The price rose by more than 10% and even exceeded the $95 level. A high was formed at $98 before a pullback occurred. The price fell below $88 and tested $82. A low was formed at $81.69 and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $94.71 swing high to the $81.69 low.
Litecoin is now trading below $88 and the 100 simple moving average (4 hours). On the upside, immediate resistance is near the $85.00 zone. There is also a major bearish trendline forming with resistance at $86.00 on the hourly chart of the LTC/USD pair.
The next major resistance is near the $88 level or the 50% Fib retracement level of the downward move from the $94.71 swing high to the $81.69 low. If there is a clear break above the USD 88 resistance, the price could stage another strong rise. In the said case, the price is likely to continue higher towards the USD 92 and USD 95 levels. Any further gains could send the price of LTC towards the $100 resistance zone.
More losses in LTC?
If the Litecoin price fails to break the USD 86 resistance level, another decline could occur. The initial downside support is near the $82 level.
The next major support forms around the $80 level, below which there is a risk of a move towards the $75 support. Any further losses could perhaps send the price towards the $68 support.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for LTC/USD is below the 50 level.
Major support levels – $82.00 followed by $80.00.
Major resistance levels – $86.00 and $88.00.