Litecoin has started to turn lower in early week trading after the seventh largest cryptocurrency by market capitalisation found strong resistance from the $73.00 level.
Litecoin price analysis shows that the cryptocurrency could still move towards the $78.00 level before a meaningful bearish correction takes place.
Litecoin medium-term price trend
The LTC/USD pair closed the month above its 200-day moving average, as bullish tones spread through the entire crypto space.
Furthermore, the chances that Litecoin put in a long-term price floor, around the $36.00 level, in December of last year are certainly growing.
The LTC/USD pair has gained over 90 per cent in value since December 17, and is trading above its 200-day moving average for the first time since August 2019.
Litecoin technical analysis shows that the cryptocurrency could rally towards the $78.00 level, which would then form an even larger inverted head-and-shoulders pattern on the daily time frame, with a substantial upside projection.
If the pattern is formed from the $78.00 area, traders are likely to use any pullbacks towards the $60.00 to $50.00 support area as a medium-term buying opportunity.
Upside targets for the LTC/USD pair would then extend towards the $90.00 and $120.00 level.
Litecoin short-term price trend
Litecoin technical analysis over the short term shows that the cryptocurrency is likely to receive strong buying interest while trading above the $67.00 level.
The lower time frames show that an inverted head-and-shoulders pattern has recently reached its full upside projection.
With the target achieved, the LTC/USD pair has started to pull back and is likely to probe back towards the $67.00 to $65.00 area to attract fresh short-term buying interest.
Traders should note that the lower time frames show that a larger inverted head-and-shoulders pattern with a $30.00 upside projection is also in play while price holds above the $60.00 level.
Litecoin technical summary
Litecoin technical analysis is showing that the next major upside target for the cryptocurrency is likely to be the $78.00 level. Bulls are in full control while price trades above the $60.00 level.
Trade Litecoin to US Dollar – LTC/USD CFD
Ready to get started?