Litecoin price is slowly recovering and trading above the $36.50 support against the US Dollar.
LTC price is facing a strong resistance near the $41.00 area.
There is a major contracting triangle forming with resistance near $40.50 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
The pair could either start a strong rally above $41.00 or it might dive towards $32.50.
Litecoin price is likely preparing for the next major move against the US Dollar, similar to bitcoin. LTC price might start a strong rally if it clears the $41.00 resistance area.
Litecoin Price Analysis
In the past few days, there was a decent recovery in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC price formed a support base above $32.52 and recently started an upside correction.
It broke the $35.00 resistance area and the 55 simple moving average (4-hours). The last swing high was formed near $43.96 and the recent low was near $34.13.
The price is currently rising and trading above the $38.00 level. There was a break above the 50% Fib retracement level of the downward move from the $43.96 high to $34.13 low. However, the price is now facing a strong resistance near $40.80 and $41.00.
There is also a major contracting triangle forming with resistance near $40.50 on the 4-hours chart of the LTC/USD pair. The triangle resistance is near the 76.4% Fib retracement level of the downward move from the $43.96 high to $34.13 low.
Therefore, an upside break above the triangle resistance and $41.00 may perhaps start a strong upward move in the near term. The next key resistance is near $45.00, above which litecoin could rise towards $50.00.
On the downside an initial support is near the $36.50 level and the 55 simple moving average (4-hours). A bearish break below the 55 SMA may perhaps start major decline below $35.00.
The next key support is near the $32.50 level, below which the bears are likely to aim a test of the $30.00 level in the near term.
Looking at the chart, litecoin price is clearly preparing for the next major move and it could either start a strong rally above $41.00 or it might dive towards $32.50 in coming sessions.
4 hours MACD – The MACD for LTC/USD is losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now above the 50 level.
Key Support Levels – $36.50 and $32.50.
Key Resistance Levels – $41.00 and $45.00.
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