• Litecoin started a downside correction from the $94 zone against the US Dollar.
• There is a key bullish trend line forming with support near $82.50 on the 4-hours chart of the LTC/USD pair.
• The pair could start a fresh increase if it clears the $86.50 resistance.
Litecoin Price Analysis
Litecoin started a downside correction from the $94 zone against the US Dollar. There was a clear move above the $88 and $90 resistance levels, but the bears were active near the $94 zone. The price is now trading below $88 and the 55 simple moving average (4 hours).
Trend Line Support
There is a key bullish trend line forming with support near $82.50 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase). The pair could start a fresh increase if it clears the $86.50 resistance. Immediate support is near the $82.50 level or 50% Fib retracement level of the upward move from the $71.09 swing low to 93.82 high.
Upside Potential
On upside, there are many hurdles for buyers near at 88 USD and 94 USD levels. A clear break above these resistances may push price towards 100 USD in short term while major hurdle remains around 108 USD – 112 USD area which is also 78% fibonacci retracement area of entire bearish run from 152 USD to 71 USD swing low respectively .
Downside Risk
If litecoin fails to stay above 82 USD level then further decline towards 76 USD and 72 USD can be expected in coming days as these are major supports till now .
Conclusion
Overall , litecoin looks in uptrend as long as it holds above 76 usd . Upside potential exists while any close below 76 usd will invalidate bullish structure .