Market Analysis

LITECOIN PRICE ANALYSIS & PREDICTION (May 31) – LTC Bounces Off This Wedge’s Support After A Test, Signals Fresh Buy

Amid the ongoing indecisiveness in the market, Litecoin LTC went through a small reduction and slipped to a two-week low. Fortunately, it found a key support level yesterday and is now slowly bouncing back.

Looking back from where Litecoin started to regain strength last month, it has posted a nice gain while building up for a bullish rally on the daily chart. However, the signal is not clear enough as it consolidates on the weekly scale.

After managing to recover near the $90 level, it encountered rejection and briefly lost momentum throughout last week. That led to a slight retracement and the asset later found a new support at $82 yesterday.

This support coincides with the lower boundary of the ascending wedge, forming since mid-April. The price bounced back and now slowly rises towards the wedge’s upper boundary. We can expect a notable gain in the next few days.

An increase above last week’s rejected high should validate a wedge’s break-up capable of bringing a full recovery in the market, skyrocketing the price back to the top. Inversely, a huge loss should be expected if a breakdown occurs.

LTC’s Key Level To Watch

Source: Tradingview

While the price is still respecting the wedge pattern, the target resistance for buying right now is $87, followed by the $89.6 high – rejected last week. A surge through this high could bring us quickly to $93.1 and the key $100 resistance level.

If the price drops from the current trading level, LTC may revisit $82 – marked as weekly support. A dip below this support would confirm a wedge breakdown to $78.3 and $74.6 in the near term.

Key Resistance Levels: $87, $89.6, $93.1

Key Support Levels: $82, $78.3, $74.6

  • Spot Price: $84.6
  • Trend: Bullish
  • Volatility: Low

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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