FxNews—Litecoin is in an uptrend, trading above the 50 and 100-period simple moving average. The robust bullish bias eased after the LTC/USD bulls peaked at the $74 market. As of writing, the pair trades at about $72, slightly below the %50 Fibonacci retracement level.
The LTC/USD 4-hour chart below demonstrates the Litecoin price, the key support and resistance levels, and the technical indicators utilized in today’s analysis.
LTCUSD Technical Analysis – 22-July-2024
The technical indicators in the 4-hour chart suggest the primary trend is bullish, but the market is oversold. Therefore, the crypto pair might consolidate by declining to lower supply levels.
- The awesome oscillator value is 0.78, and the recent bar changed its color to red, signaling that the bull market is weakening.
- The relative strength index indicator flips below the median line, showing 49 in the description, meaning the uptrend loses momentum.
- The stochastic oscillator hovers in the overbought territory, signifying that Litecoin could be overpriced against the U.S. Dollar, and the price might consolidate from this point.
- The cryptocurrency’s price in discussion is above the 50- and 100-period simple moving average, demonstrating a bullish primary trend.
LTCUSD Forecast – 22-July-2024
The primary trend is bullish. Therefore, traders and investors should seek buying opportunities near the key support levels or after a resistance breakout.
The immediate resistance is the July 17 high at $74. For the uptrend to resume, bulls (buyers) should close and stabilize the price above the $74 mark. If this scenario unfolds, the bull’s path to the June 79 high at 76.5 will likely be paved, a resistance area backed by the 78.6% Fibonacci.
Please note that the bull market should be invalidated if the LTC/USD price dips below the 61.8% Fibonacci at $68.6, backed by the 100-period simple moving average.
LTC/USD Bearish Scenario – 22-July-2024
The pivot point between the bull and bear markets is the 61.8% Fibonacci at $68.6. If the bears (sellers) push the price below $68.6, the decline could extend to the July 8 high of $65.9.
Furthermore, if the selling pressure exceeds $65.9, the next bearish target could be the 78.6% Fibonacci at $63.0.
Litecoin Key Levels – 22-July-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: $70.6 / $68.6 / $65.9 / $$63.0
- Resistance: $74.0 / $76.5
Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
