Litecoin (LTC) Price Analysis: $45 Support Holds The Key For Upside Break

Litecoin (LTC) Price Analysis: $45 Support Holds The Key For Upside Break

October 8, 2020

Litecoin price is currently trading in a range above $45.00 against the US Dollar, similar to bitcoin. LTC price could start a strong upward move if it clears the $48.20 resistance.

Litecoin Price Analysis

In the past few sessions, there was an increase in selling pressure in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC price gained pace above the $47.00 level and it even spiked above the $48.00 level.

However, the price struggled to continue higher and formed a high at $48.20. Recently, there was a downside correction below the $47.00 and $46.50 levels. The price broke the 50% Fib retracement level of the upward move from the $43.26 low to $48.20 high.

There was also a spike below the $45.50 support and the 55 simple moving average (4-hours). The bulls took a stand near the $45.00 support level. The 61.8% Fib retracement level of the upward move from the $43.26 low to $48.20 high also acted as a strong support.

There is also a key bullish trend line forming with support near $45.50 on the 4-hours chart of the LTC/USD pair. On the upside, the price is facing a major hurdle near the $47.00 and $48.20 levels.

A clear break above the $47.00 resistance and then a follow up move above the $48.20 high is must for a sustained move higher. The next major resistance is near the $50.00 level. Conversely, the price might fail to continue higher above $47.00 or $48.20.

An initial support on the downside is near the $45.80 level and the 55 simple moving average (4-hours). The next major support is near the trend line and $45.50, below which the bears are likely to aim a clear break below the main $45.00 support.

Litecoin (LTC) Price

Looking at the chart, litecoin price is slowly recovering and trading above the $45.00 support zone. Overall, the price is likely to climb higher unless it breaks the $45.00 support zone in the near term.

Technical indicators

4 hours MACD – The MACD for LTC/USD is struggling to gain pace in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is currently just above the 50 level.

Key Support Levels – $45.50 and $45.00.

Key Resistance Levels – $47.00 and $48.20.

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