Litecoin Bounces From Lower Boundary Of Price Channel – Are We Pushing Higher?


Litecoin's MimbleWimble Testnet Launch
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Litecoin Bounces From Lower Boundary Of Price Channel – Are We Pushing Higher?

  • Litecoin saw a small 2% price increase over the past 24 hours to bring the price back above $70.
  • The cryptocurrency managed to find strong support at $67.50 which prevented the market from slipping lower.

Litecoin saw a small 2% rebound today after suffering a heavy price decrease of around 12% this past week. The cryptocurrency has finally climbed back above $70 after managing to find support at around $67.50.

Litecoin is now ranked in the 7th position as it presently holds a market cap value of around $4.61 billion.

Litecoin Price Analysis

LTC/USD – Daily CHART – SHORT TERM

LTC/USD – DAILY – Source: TradingView

Market Overview

Since my last Litecoin analysis, Litecoin continued to find support around the $67.50 area, preventing the market from dropping lower. The cryptocurrency is now attempting a rebound higher.

It also managed to find support at the lower boundary of the ascending price channel we have been following, further adding to the support in the area.

Short term prediction: BULLISH

The support at $67 held pretty strong, thanks to the rising price channel, and therefore we can consider Litecoin within the bullish trend still. It would need to collapse beneath $67 before turning neutral again.

If the bulls can continue to push above $71, the first level of strong resistance is expected at $76.72, provided by a bearish .382 Fibonacci Retracement level. Above this, resistance lies at $80 and $83.05. 

If the buyers can create a fresh 2020 high above $83, resistance lies at $86 (1.272 Fib Extension), $89.28 (bearish .5 Fib Retracement), and $95.55 (1.618 Fib Extension).

On the other hand, if the sellers push lower, the first level of support is expected at the lower boundary of the price channel. Beneath this, the $67.50 level should provide strong support. If they continue lower, additional support lies at $63.57 (.618 Fib Retracement) and the 200-days EMA.

The RSI recently slipped beneath the 50 level, but the bulls are trying to bring the market back above. For a bounce higher, we need to wait for the RSI to break back above 50 to show that the bulls are back in control over the market momentum.

Key Levels

Support: $67.50, $64.59, $61.33, $60
Resistance: $76.72, $78.44, $80, $83, $86, $89.28, $90

Author: Yaz Sheikh
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
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Yaz Sheikh 182 Articles
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
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