After an interesting two-week recovery above the $74 level, Litecoin fell and remained in consolidation for days. The bulls are now trying to defend this level to fuel another rally. How well they can hold it is yet uncertain.

Litecoin appeared to be taking a break after it insanely returned roughly 80% in the past weeks. From a monthly low of $47.60 to a high of $83.66, the coin dropped to around $70.54 yesterday and quickly recovered above $84 – the critical resistance level that the price broke last week.

Yesterday’s price closed with a pin bar could mean that Litecoin may resume the positive rally shortly. But currently, there’s not enough buying volume in the market. The price needs to close well above the weekly candle’s $80 price level before we can confirm a buy.

Meanwhile, the price is still consolidating on the daily chart due to low trading volatility. If the price continues to form a lower low and lower high on the hourly chart, a strong retracement could occur before the price bounces back. 

The price remains in favor of the bull, but there’s no sign of commitment to sustaining momentum. If the bulls continue to show no interest, the trend could turn in favor of the bears as Litecoin could severely shed a loss.

Litecoin Price Analysis (LTCUSDT): Daily Chart

LTC Price Analysis
Source: Tradingview

The price is still up by 8.9% over the past few days. If the price dip, particularly beneath $74, the potential level to watch as support is $65.13. A deeper retracement could plunge the price as low as $55.92.

In case of a continuation, Litecoin would need to retake the $80 level, followed by the $83.66 resistance level. A push above these levels should validate more buying toward the $91.6 resistance. If the market fails to pull back here, the rally would continue to $98.97 and potentially to $106 in the coming weeks.

Key Resistance Levels: $83.66, $91.6, $98.97

Key Support Levels: $74, $65.13, $55.92

  • Spot Price: $76
  • Trend: Neutral – Bullish
  • Volatility: Moderate

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

Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!

Image Source: ipheung/123RF // Image Effects by Colorcinch

Michael is a professional trader and cryptocurrency technical analyst with many years of trading experience. He became passionate about cryptocurrencies and blockchain technology through his sister and has since been following the industry