- Litecoin saw a 4% price increase today after breaking above the 100-days EMA to reach $49.62.
- The bulls are now on the offensive for Litecoin and a closing candle above $50 would set the next target for $56.
Litecoin saw a 4% price rise today as the bulls start a push upward to break the 100-days EMA at $48 and reach the $49.62 level. The cryptocurrency was trapped beneath $47.70 for the majority of April but managed to break above this level toward the end of the month.
However, the buyers were never able to climb above the 100-days EMA and were rejected on each attempt to pass it. If today’s candle can close as it is now, this will mark a break of the 100-days EMA and should put the bulls on the offensive to target the $56 level next.
Litecoin Price Analysis
LTC/USD – Daily CHART – SHORT TERM
Analyzing the daily chart above, we can clearly see that Litecoin was trapped at the $47.70 level for the majority of April. The resistance here was provided by a bearish .382 Fibonacci Retracement level that is measured from the Feb high to the March low.
The bulls attempted to break above this resistance at the start of April but were turned away after the attempt. The market then went on to drop into the rising trend line where support was found around the $39 level.
Litecoin rebounded from here and eventually broke the resistance at $47.70 toward the end of April.
In today’s trading session, the cryptocurrency broke the 100-days EMA as it attempts to breach $50.
Short term prediction: BULLISH
The break above $47.70 turned Litecoin bullish and if today’s candle can close above the 100-days EMA this will confirm the bullish sentiment. LTC would need to drop beneath $47.70 to turn neutral again and would have to break beneath the rising trend line to turn bearish.
If the buyers break $50, resistance can be found at $52, $54.70 (bearish .5 Fib Retracement), and $56 (1.618 Fib Extension).
On the other side, if the sellers push lower, support lies at $47.70, $45, $44.62, and $42.50.
Support: $47.70, $45, $42.50, $42.
Resistance: $50, $52, $54.70, $56.
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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.