With the exception of Bitcoin, the price of Litecoin has shown the most promising signs in the short-term compared to all other major cryptocurrencies. The coin had been trading over the $80 resistance level for the better part of the week. Despite the selling pressure yesterday, the price was maintained above this threshold.
There was an attempt yesterday when the bulls tried to push it past $85.00 against the US dollar. However, the LTC/USD pair failed to hold gains and declined back towards the $80.00 support. In the last three hours, the price has shown a strong comeback, likely a result of Bitcoin price crossing over the $8,000 mark.
Looking at the chart, the price traded as low as $80.87 before buyers came in strong. The price bounced back and moved above the 50% Fib retracement level of the last drop from the $85.09 high to $80.87 low.
There was also a break just over the $82.00 level and the 100 hourly simple moving average. We sense there is a major resistance near the $84.50 and $85.00 levels which might be difficult to clear for the bulls.
For the long term, there is a new connecting bearish trend line in place with resistance at $84.70 on the hourly chart. This trend line is also near the 76.4% Fib retracement level of the last drop which occurred from the $85.09 high to $80.87 low.
We can conclude that a close above the $84.70 and $85.00 resistance levels for the day is likely to clear the path for more gains in the short term. The next resistance level would be near the $89.00 and $90.00 levels which would cause a selling pressure in the market.
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