TL;DR Breakdown
- Litecoin Price Analysis shows the cryptocurrency up another 6 percent following yesterday’s resistance-breaking rise
- LTC/USD pair currently trading at $185, testing the new resistance mark
- To sustain above the second resistance point at $181, breakout from the 23.6 percent FIB at $178 is needed
Litecoin price analysis suggests continuation of a bullish run that started from a 2.50 percent rise on Tuesday, reversing a 4 percent decline from Monday. Litecoin finished August at $171.57, up 18.79 percent from last month.
The current bullish trend for LTC comes after a period of consolidation above the $170 mark. Starting the ascend yesterday at $171, Litecoin had risen around 8 percent up to $186.90, after falling subtly to $183.65 at the time of writing.
The major resistance level is now being tested at $185, with second resistance set at $181. To maintain above that, LTC will need to break past the 23.6 percent FIB at the $178 mark. Barring a major sell-off from here, Litecoin is set to stay clear of support levels at $175 and $166.
The larger cryptocurrency market showed plenty of promise today, with Bitcoin leading the way after breaking past the $50,000 mark again. Likewise, Ethereum rose by 7 percent to trade above $3,700.
Altcoins also exhibited gains in the market, with Dogecoin rising 12 percent up to $0.304, and Cardano moving up around 9 percent to trade above the $3 mark. Litecoin price analysis followed similar trends in the market, as its trading volume increased by 4.8 percent along with market cap increasing by 2 percent.
LTC/USD 24-hour chart: Trend reversal after consolidation period confirmed
The 24-hour chart for LTC/USD pair confirms an upturn in fortunes after a brief period of consolidation for the 15th largest cryptocurrency. Over the last two 24-hour trade pairs, the pair went up almost 9 percent, jumping from $167 to $185 and moving price above the Simple Moving Average (SMA).
However, the uptrend also shows an overbought price, signalling that the resistance might force a sell off soon. This will send the pair down towards the second resistance at $181. In order to stay above that mark, major market support will be required to breakout from the 23.6 percent FIB of $178 as per Litecoin price analysis.
LTC/USD 4-hour chart: Current trading session crucial to maintain momentum
After a bullish run starting over the new month, LTC/USD pair is testing resistance which can be confirmed from the 4-hour trade chart. After breaking the $185 resistance mark earlier, some momentum is seen to be lost in the afternoon session, as sellers pull price downward.
The 4-hour Relative Strength Index (RSI) sits at around 60, confirming an almost overvalued current status. The price in the previous trading session shot above the upper Bollinger Bands’ curve, confirming the trend reversal.
Barring a significant reversal, Litecoin should maintain the previous resistance of $175 and consolidate from there. In the event of bulls taking over the market again, the second major resistance of $181 would continue to be tested.
Conclusion
A positive start of the month for Litecoin enters a testing phase as it requires support from the market to maintain above the resistance levels of $180. The overall crypto market has strengthened over the week and it remains likely that the new trend will continue over the short-term.
In the current scenario, the first major technical support point is at $166 and pivot level at $171. The 23.6 percent FIB Retracement Level is $176, 38.2 percent is $223 and 62 percent is at $296.
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