- Litecoin price is advancing higher but restricted by the resistance at $88.00.
- Both the trendline and the 50 SMA will support the price in the event of a trend reversal.
There was a lower correction following the bullish on Tuesday this week. The price lost steam short of $92.00, consequently, it succumbed to brief selling pressure yesterday where it tested the support at $84.5. The cryptocurrency is advancing higher on Thursday, but the resistance at $88.00 is limiting gains.
Applying Fib retracement between the highs of $101.37 and swing lows of $72.92 highlights a short-term immediate support at the 50% level at $87.1. There is a trendline support at $86.00 while the 50 Simple Moving Average is at $84.5. Litecoin price is still bullish above the support and a break above $88.00 will allow it to retest $90.00.
Technical indicators, on the other hand, are sending bullish signals. For example, the stochastic RSI has recovered from the oversold levels and is at 30.97% and pointing north. The MACD momentum indicator is still in the positive territory to show that the bulls still have some willpower to push the price higher.
Litecoin trading volume has been rising significantly in the past few days. CoinMarketCap shows that there is a 47.3% increase in the volume from July 14th to July 18. At the same time, the market capitalization has grown from $4.4 billion to $5.5 billion in the same period.
LTC/USD 2-hour chart