Litecoin Price $72.50 Area Is Major Resistance

Litecoin (LTC) price attempted to break out of the $72.50 resistance area on December 26 but was rejected. Due to the confluence of several resistance levels, this is a key area for the future trend.

Litecoin was created by Charlie Lee on October 7, 2011. The Litecoin network went live on October 12 of the same year. The cryptocurrency is similar to bitcoin in that it was based on its protocol, but is designed to provide faster transactions.

Litecoin price has recovered significantly since June 2022 lows and is currently trading up 72% from them. However, the direction of the trend is still unclear.

Litecoin Price Attempts To Breakout

Litecoin price has been rising since June 10 with an ascending support line. The line was validated several times, most recently on 9 November. After bouncing, LTC price formed a bullish engulfing candlestick (highlighted). This led to an upward movement that took Litecoin price above the $72.50 resistance area. This was a significant development as the area was first since May (red mark).

However, Litecoin price failed to sustain its upward momentum and declined below the resistance area shortly afterwards. Now, the $72.50 area is expected to provide resistance again.

The daily RSI supports the validity of the resistance zone. The indicator is validating both the 50 line and the descending resistance line that has been present since early November.

Therefore, whether Litecoin price reclaims the $72.50 area, above which the RSI also breaks, will determine the future trend direction. Failure to do so could lead to a further decline towards the ascending support line currently located at $57.

Litecoin Price Support
LTC/USDT Daily Chart. Source: TradingView

short term rejection

The six-hours chart further adds to the importance of the $72.50 resistance area, as this area coincides with the short-term descending resistance line from December 6th and is very close to the 0.5 Fibonacci retracement resistance level. Therefore, the trend is considered bearish until Litecoin price reclaims this area.

Beyond this, a key level on the wave count is $73.49. A move above this would invalidate the possibility that the pullback is a five-wave downside move (black), therefore confirming that this is a correction.

Therefore, whether LTC price breaks out or gets rejected could determine the future trend. In the former case, Litecoin price is likely to move towards $100, while in the latter case it will drop to $57.

ltc price drop
LTC/USDT six hour chart. Source: TradingView

To conclude, the future LTC price projection is still unclear. If LTC price manages to climb above $72.50, it would mean that the trend is bullish. On the other hand, if there is a rejection in Litecoin price, it could catalyze a decline towards $57.

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