Litecoin price is attempting an upside break above $93 against the US dollar. LTC could rally if it clears the $93 and $95 resistance levels.
- Litecoin is slowly moving towards $95 against the US dollar.
- The price is now trading above $90 and the 100 simple moving average (4 hours).
- A major contraction triangle is forming with resistance near $92.50 on the 4-hour chart of the LTC/USD pair (data feed from Kraken).
- The price could rise towards the $100 and $105 level.
Litecoin price eyes upside break
After a steady rise, Litecoin price struggled near the $95 resistance against the US dollar. LTC price started a downside correction and it traded below the USD 92 level.
The price tested the 23.6% Fib retracement level of the upward move from the $5.26 swing low to the $95.00 high. However, the bulls appear to be protecting a downside break, unlike Bitcoin and Ethereum. Litecoin is now consolidating above the USD 90 level.
It is trading above $90 and the 100 simple moving average (4 hours). A major contraction triangle is also forming with resistance near $92.50 on the 4-hour chart of the LTC/USD pair.
Source: LTCUSD at TradingView.com
On the upside, immediate resistance is near the $93 zone. The next major resistance is near the USD 95 level. If there is a clear break above the USD 95 resistance, the price could rise sharply again. In the said case, the price is likely to continue higher towards $100 and $105. More gains may push the price of LTC to the $112 resistance zone.
New decline in LTC?
If the Litecoin price fails to cross the $95 resistance level, there could be another drop. The first support on the downside is near the $91 level and the lower trendline of the triangle.
The next major support is forming near the $85 level or the 50% Fib retracement level of the upward move from the $5.26 swing low to the $95.00 high, below which there is a risk of a move in towards the $80 support. Any further losses might push the price towards the $75 support.
Technical indicators:
4-hour MACD – The MACD is now gaining pace in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for LTC/USD is above the 50 level.
Major Support Levels – $91.00 followed by $85.00.
Major Resistance Levels – $93.00 and $95.00.