- Litecoin is trading above a very important trendline which is a key indicator of an uptrend.
- The increasing MACD divergence suggests growth above $120 towards $130 in the short-term.
Litecoin is trading above the key support area following the correction that began last week from the consolidation between $130 and $140 resistance zone. Litecoin ascended to new highs in June touching $150 to the upside according to the price data from Coinbase, however, diminishing buying power and rising selling pressure led to a gains-trimming exercise.
LTC/USD 4-h chart
There was an initial drop below the 100 Simple Moving Average at $135 which gave the bears a boost as they pushed Litecoin below $130 support area. Declines progressed under $120 and even $110 before forming a low at $107.
While recovery has since occurred, and Litecoin has stepped above $130 in July, the fifth largest crypto has not been able to correction past the $140 level (seller congestion zone). Instead, LTC/USD explored levels closer to $110 support again.
In spite of the correction, Litecoin is trading above a very important trendline which is a key indicator that the crypto is still in an uptrend amid all the up and down movements. At press time, LTC exchanges hands at $119 market value. The 4-h chart shows $120 being the immediate resistance while the 100 SMA currently at $129 positioned to prevent movements towards the third resistance at $130.
To come out of the bear range, Litecoin must find support between $130 and $140; a move that will allow the bulls to focus on $150 level in the coming weeks. Technically, has the potential to recover especially with the Moving Average Convergence Divergence (MACD) crossing into the positive side.
Litecoin Key Technical Indicators
Key Support Areas: $110, $100 and $70 – $80.
Critical Hurdles: $120, EMA100 at $125, 100 SMA at $129, $130 and $140.
MACD 4-H: Divergence into the positive region is a key indicator for growth in the near-term.
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