Litecoin Price Forecast: LTC/USD defends critical support, new uptrend eyes $80 – Confluence Detector


  • Litecoin builds upon the confluence support levels above $70 to sustain gains to $80.
  • LTC/USD has to close the day above the 50 SMA on the 4-hour chart to confirm the expected breakout.

Litecoin embraced support at $65 following a sharp drop on Thursday. A higher short term anchor has been established at $70. LTC/USD is trading at $72 amid a consistent push for further recovery from the bulls.

Litecoin bulls fix their eyes on $80 as recovery looms

LTC is trading above the 50 Simple Moving Average, which gives credence to the bullish narrative. Note that Litecoin has not exchanged hands beneath this crucial level since mid-October.

The 50 SMA is still increasing the gap above the 100 SMA and the 200 SMA, suggesting that buyers have the upper hand. Resistance is anticipated at $80 and is likely to delay the uptrend targeting $90 and $100, respectively.

LTC/USD price chart

LTC/USD daily chart

The TD Sequential indicator has presented a buy signal in the form of a red nine candlestick on LTC’s 4-hour chart. The bullish formation approximates that a surge in demand for Litecoin could see it spike for one to four daily candlesticks. Note that if buying pressure consistently builds, LTC/USD might begin a new uptrend toward $100.

LTC/USD price chart

LTC/USD 4-hour chart

The same 4-hour chart shows that if Litecoin closed the day above the 50 SMA, a breakout might come into the picture for gains eyeing $80 and beyond. Similarly, the Relative Strength Index has recovered from the oversold, thus reinforcing the bullish outlook.

According to the confluence detector, Litecoin is sitting on areas with immense support. The initial anchor is seen at $71.9, as highlighted by the One-day Bollinger Band middle boundary, the previous low 15-minutes, and the previous high one-hour.

The second robust support lies at $71.7 and is home to the Fibonacci 38.2% one-day and the 15-minutes Bollinger Band middle boundary. On the upside, trading above the confluence resistance at $72.9 might trigger a rally to $80.

fxsoriginal

LTC/USD confluence chart

It is worth mentioning that if the price closed the day under the 50 SMA on the 4-hour chart, Litecoin might be forced to abandon the bullish outlook. On the other hand, breaking below the confluence support could trigger massive declines, perhaps strong enough to overshoot the next critical support at the 200 SMA in the same 4-hour timeframe.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

VeChain price reaches the limit, easy money in VET has been made

VeChain price did trade below the June 22 low in July but has responded with a 40% return (based on the current price) over the last six trading days, a sign of commitment and emotion in a cryptocurrency that had lead the market lower.

More VeChain news

XLM Price Prediction: Stellar faces technical challenges, upside limited

XLM price has climbed over 40% since the July 20 low, shredding the trading range defined by the descending parallel channel since the end of June. The rise has taken Stellar to a trifecta of resistance around $0.278, but enthusiasm behind ...

More Stellar news

Bitcoin price pares gains as Amazon denies it will accept BTC in 2021

Bitcoin price was up over 14% at one time today, taking it close to the imposing resistance beginning at $41,300. BTC falling wedge pattern breakout remains secure and projects higher prices.

More Bitcoin News

SafeMoon price nears lift-off, as SAFEMOON possesses the conditions for a big move

Safemoon price has been coiling within a descending triangle pattern since the May crash, highlighted by no sustainable rallies and continuous support along the May 19 low of $0.00000261.

More Ethereum News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP