Technical Analysis - Litecoin

5:53 PM December 13, 2022

Despite the negative sentiment caused by the bankruptcy of the FTX exchange and the unclear situation of its main competitor Binance, major cryptocurrencies are recording solid gains today, mainly due to better than expected inflation data from the US. Bitcoin broke above $17,700 while Ethereum is trading around $1,320. An interesting technical situation can be observed in the Litecoin market, where the price tested a key support zone yesterday. The lower limit of the zone around $72.25-74.00 was tested again today, after which the price resumed upward move and broke above the downward trendline. The upward move may accelerate as long as the price sits above the aforementioned zone around $72.25-74.00, which is marked the lower limit of the 1:1 pattern, previous price reactions, 38.2% Fibonacci retracement of the upward wave launched on November 14. In this scenario, the nearest resistance to watch can be found around the recent high at $84.70. It seems that only a break below the $72.25 level could change the balance of power on the chart and point to resumption of the downward trend.

Litecoin, H4 interval. Source: xStation5

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