Litecoin (LTC), the ninth-largest cryptocurrency by market capitalization, has been trading below the $90 resistance zone against the U.S. Dollar (USD) in recent hours. While this puts it in a bearish zone, indicators suggest there could be a fresh increase up to $100 if it clears the $92 resistance zone.
After settling below the $90 resistance zone, Litecoin broke the $88 support zone and tested the $85 support one. The lowest it reached was $85.13, and since then, it has attempted another recovery wave. It has been above the 50% Fibonacci retracement level of the downward movement from the $91.46 swing high to the $85.13 low. Litecoin is currently trading below $90 and the 55 simple moving average (4 hours).
On the upside, Litecoin price is facing resistance near the $49.00 zone. A major contracting triangle is forming with resistance near $89.20 on the 4-hour chart of the LTC/USD pair (data feed from Coinbase). This is close to the 61.8% Fibonacci retracement level of the downward move from the $91.46 swing high to the $85.13 low.
The next major resistance for Litecoin is near the $90 level, followed by the main resistance at the $92 level. If Litecoin clears the $92 level, the price could rise to the $95 or even $98 level, with the next significant resistance being $100.
On the downside, Litecoin has immediate support near the $86.60 level, followed by key support at $85.00. If it breaks below the $85.00 support level, the price could fall further to the $80 level.
When looking at the chart, Litecoin price is clearly trading below $90 and the 55 simple moving average (4 hours). However, the price could continue moving down if it stays below the $92 resistance zone.
Technical indicators can shed any more light on this situation. The moving average convergence/divergence (MACD) for LTC/USD over the past 4 hours has been losing pace in the bearish zone.
The Relative Strength Index (RSI) for LTC/USD over the past 4 hours is now below the 50 level. This suggests that the price could continue moving down if it stays below the $92 resistance zone.
In terms of key support and resistance levels, Litecoin has support levels of $86.60 and $85.00 and resistance levels of $90.00 and $92.00. Ultimately, the picture remains mixed for Litecoin’s price, with the potential for more price declines if it stays below the key $92 level.
