Litecoin Rallies 10%, Indicators Suggest Rally To $70

Litecoin price is gaining momentum above $60.00 against the US Dollar. LTC is likely to continue higher (similar to bitcoin) towards $70.00 or $75.00 in the near term.

  • Litecoin started a strong rally above the $55.50 and $58.00 resistance levels against the US Dollar.
  • The price is now trading nicely above the $60.00 level and the 100 simple moving average (4-hours).
  • There was a break above a major bearish trend line with resistance near $54.00 on the 4-hours chart of the LTC/USD pair (data feed from Kraken).
  • The bulls seem to be aiming a larger rally towards the $70.00 resistance zone.

Litecoin Price is Gaining Bullish Momentum

This week, bitcoin price started a strong rally above $14,000 and $15,000, but altcoins lacked momentum. However, they started picking up momentum, and recently, there was a decent increase in Ethereum, ripple and litecoin against the US Dollar.

A strong support base was formed near $52.00 before litecoin price started a strong rally. There was a break above a major bearish trend line with resistance near $54.00 on the 4-hours chart of the LTC/USD pair.

The pair gained pace above the $55.00 resistance and 100 simple moving average (4-hours). It opened the doors for more gains above the $60.00 resistance and the price even climbed above the $60.46 swing high. An initial resistance is near the $62.65 level.

Source: LTCUSD on TradingView.com

The 1.236 Fib extension level of the downward move from the $60.46 high to $51.06 swing low is also near the $62.68 level. If there are more upsides, the price is likely to continue higher towards the $70.00 resistance.

An intermediate resistance could be near $66.50 or the 1.618 Fib extension level of the downward move from the $60.46 high to $51.06 swing low.

Dips Likely Limited in LTC

If litecoin fails to continue above the $62.65 resistance or the $65.00 zone, there are chances of a downside correction. On the downside, the first major support is near the $60.00 level.

The main support is now forming near the $58.00 level, below which there is a risk of a drop towards the $55.00 support and the 100 simple moving average (4-hours).

Technical indicators:

4-hours MACD – The MACD is now gaining pace in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI for LTC/USD is currently rising and it is well above the 70 level.

Major Support Levels – $60.00 followed by $58.00.

Major Resistance Levels – $62.65 and $66.50.