Litecoin Price Analysis: Recovery Attempt Amidst Bearish Zone.
In the past few hours, several cryptocurrencies, including Bitcoin, Ethereum, Ripple, and Litecoin, experienced a brief recovery against the US Dollar. However, Litecoin (LTC) had previously slipped below the $85 resistance zone, entering a bearish trend. This article provides an analysis of the recent price movements in Litecoin and outlines the key levels of support and resistance.
Bearish Breakdown and Support Levels
Breaking the $80 Support: Litecoin’s price witnessed a bearish breakdown as it breached the crucial $80 support zone and tested the $75 level. The cryptocurrency reached a low of approximately $75.32, indicating a bearish sentiment in the market.
Recovery Attempt: Following the downward move, Litecoin is now striving to initiate a recovery wave. It has managed to climb above the 23.6% Fibonacci retracement level of the decline from the $79.76 swing high to the $75.32 low.
Resistance Levels and Key Trends
Resistance near $85: Litecoin is currently trading below $85 and the 55 simple moving average (4 hours). The immediate resistance is expected around the $82.50 zone.
Bearish Trend Line and Fib Retracement: The formation of a significant bearish trend line near $84.8 on the 4-hour chart of the LTC/USD pair adds to the resistance. This trend line aligns closely with the 61.8% Fibonacci retracement level of the downward move from the $79.76 swing high to the $75.32 low.
Potential Upside Scenario
Clearing $85 Resistance: A decisive break above the $85 resistance level could trigger a potential upward momentum for Litecoin. In such a scenario, the price might surge towards the $92 level, followed by a possible target at $95. Further upside momentum could lead to a substantial resistance point at $100.
Immediate Support at $78: On the downside, Litecoin has immediate support around the $78 level. A strong defense of this support level could stabilize the price and prevent further downward pressure.
Key Support at $75: If the $78 support fails to hold, the next crucial level to watch is $75. A breach below this level might result in accelerated selling pressure, potentially pushing Litecoin toward the $70 level in the near term.
Despite a recent recovery attempt, Litecoin remains in a bearish zone as it struggles to overcome key resistance levels, particularly around $85. A breakthrough above this level could pave the way for further gains, with targets set at $92 and $95. On the flip side, failure to maintain support at $78 and a subsequent breakdown below $75 might lead to intensified selling, potentially driving the price toward $70. Traders and investors should closely monitor these critical levels to gauge the future trajectory of Litecoin.