Litecoin rebounds above $120 support as bulls attempt to break the resistance line of January 10. The bulls have broken the resistance line and reached the high of $142. Nonetheless, if the bullish momentum is sustained, buyers are expected to push the price above the $165 high.
A retest at the $185 overhead resistance will be a possible bet if the $165 resistance is breached. Conversely, if the bullish momentum is not sustained, the sellers will push LTC to the bearish trend zone. In a nutshell, the $120 support may be broken and this will signal the resumption of the downtrend. If the $120 support is broken the coin will decline to the low of $70.
The crypto is above the 25% range of the daily stochastic. This indicates that the coin has bullish momentum. The RSI is indicating that the coin is above level 53 which implies that it has room to rally on the upside. The crypto’s price is breaking above the SMAs which will propel the coin to rise.
Major Resistance Levels – $165 and $185
Major Support Levels – $120 and $55
Litecoin is attempting to break the resistance line. This is a positive move as LTC resumes an uptrend. According to the Fibonacci tool, LTC will reach a high of $257 if the overhead resistance is breached. On January 10 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This gives the impression that the coin will rise to level 1.618Fibonacci extension level or a high of $257.00.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.