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
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
