LTCUSD Price Technical Analysis – Support Turned Resistance?

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LTCUSD Price Key Highlights

  • LTCUSD price made an upside breakout of its triangle consolidation pattern, followed by a strong rally.
  • Price made it up all the way to an area of interest, which has held as support in the past and might serve as resistance from now on.

LTCUSD price could resume its drop from here, as the broken support area lines up with the 38.2% Fibonacci retracement level on the 4-hour time frame.

Bears to Come Back

Technical indicators are suggesting that the selloff could resume sooner or later, as stochastic reached the overbought zone and turned lower. This could indicate that bears could regain control and push LTCUSD price back to the previous lows at 2.884.

RSI is also in the overbought area and is starting to turn down, suggesting that selling pressure could return. However, if buyers stay on top of their game, price could still have a shot at making a larger correction from the latest drop.

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The 100 SMA recently made a downward crossover on the 4-hour time frame so the path of least resistance is to the downside and LTCUSD price could be in for more losses. The recent rally may have been a spillover effect from the BTCUSD price upside breakout and profit-taking off dollar long positions ahead of the US Thanksgiving holidays.

Moving forward, dollar strength could stay a major market theme since the US central bank is on track towards hiking interest rates by December. Although policymakers clarified that their tightening cycle would be slow and gradual, the US dollar could still draw a lot of demand due to higher rates of return.

Intraday support level – 2.885

Intraday resistance level – 3.600

Technical Indicators Settings:

  • 100 SMA and 200 SMA
  • Stochastic (8, 3, 3)
  • RSI (14)
  • ADX (14)

Charts from Bitfinex, courtesy of TradingView