Litecoin price is attempting a $75 recovery wave against the US dollar. LTC could struggle to clear $82 or $85 and could start another decline.
- Litecoin is slowly moving up and correcting towards $82 against the US dollar.
- The price is now trading above $85 and the 100 simple moving average (4 hours).
- There was a break below a major ascending channel with support near $86 on the 4-hour chart of the LTC/USD pair (data feed from Kraken).
- The price could encounter strong resistance near the $82 and $85 levels.
Litecoin price remains in downtrend
Over the past week, Litecoin price struggled near the USD 90 resistance against the US dollar. LTC price started falling again and it traded below the USD 85 support, similar to Bitcoin and Ethereum.
In addition, there was a break below a major ascending channel with support near USD 86 on the 4-hour chart of the LTC/USD pair. The pair traded below the $80 support level. A low is forming near $75.26 and the price is now trying to make a recovery wave.
LTC is now trading above USD 85 and the 100 simple moving average (4 hours). The price managed to climb above the 23.6% Fib retracement level of the downward move from the $89.13 swing high to the $75.26 low.
On the upside, immediate resistance is near the $82 zone. It is close to the 50% Fib retracement level of the downward move from the $89.13 swing high to the $75.26 low. The next major resistance is near the USD 85 level. If there is a clear break above the $85 resistance, the price could rise sharply again.
Source: LTCUSD at TradingView.com
In the said case, the price is likely to continue higher towards $90 and $92. More gains may push the price of LTC to the $100 resistance zone.
New decline in LTC?
If the Litecoin price fails to cross the $82 resistance level, there could be another drop. The first support on the downside is near the $78 level.
The next major support is forming near the $75 level, below which there is a risk of a move towards the $72 support. Any further losses might push the price towards the $65 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 below the 50 level.
Main Support Levels – $78.00 followed by $75.00.
Major Resistance Levels – $82.00 and $85.00.