For the past week, Litecoin (LTC) has been fluctuating between $155 and $180, after the recent breakdown. At the same time, buyers have been making a concerted effort to push LTC price above the minor resistance.
Today, March 2, after a successful rebound above the $171 low, the bulls have broken the $180 resistance. If the current bullish momentum is sustained, the next resistance at $205 is likely to be retested or broken. The breaking of the resistance at $205 is indispensable to the resumption of upside momentum.
Now the LTC/USD pair will have an accelerated price movement on the upside. In the previous price action, the altcoin fell to $155 low and the price corrected upward but could not break the resistance at $205. The market dropped to the same low but was confined between $155 and $180 price levels. Today, the breakout at $180 resistance has compelled the market to rise. A retest of the $240 overhead resistance is likely if the next resistance is overcome. Conversely, if the LTC price fails to cross above $205 resistance, then we should expect a range-bound move between $155 and $205.
LTC price finds support above 50-day SMA and rebounds. The market will resume an uptrend if price breaks above the 21-day and 50-day SMAs. LTC is presently above 80% range of the daily stochastic. The price has reached the overbought region of the market. The upward move is likely because in a trending market the overbought condition may not hold.
Major Resistance Levels – $240 and $260
Major Support Levels – $160 and $140
Litecoin is making a positive move on the upside. The Fibonacci tool is not likely to hold as price resumes upward. The retraced candle body tested the 78.6% Fibonacci retracement level. This retracement indicates that LTC will fall and reverse at level 1.272 Fibonacci extension level or a low of $150.57. The price action has broken the $180 resistance level.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.