• Litecoin price pulls it together after price action slips below an important technical level.
  • LTC price could still hit new highs for the month as markets turn bullish. 
  • Watch out for premature positioning as the bear market is not yet over.

Litecoin (LTC) price initially dropped over 2% this morning as the ASIA PAC session remained closed due to a regional bank holiday. In a remote trading session, the dollar backed off on all fronts and triggered a continuation of the positive mood from Friday. Litecoin price faded after the rejection on Saturday, but this was contained and could still lead to a break above $65.08. Much will depend on how long this risk on climate can remain as several analysts still point to the same issues at hand, which should eventually result in more dollar strength.

LTC price receives hail mary from global markets

Litecoin price is currently trading flat on the day after an early-morning rally was able to pull it out of the swamp price action was sinking into. LTC price underwent a firm rejection on Saturday after it nearly hit $65.08, a historic pivotal level. On Sunday, LTC price underwent a fade  which even pulled price action below the monthly R1 resistance level, which had been expected to provide support. 

Litecoin price now trades at the mercy of the markets that have been rallying quite firmly this morning, although it is questionable whether it will continue if the US session takes over the sentiment. With the daily opening below the monthly R1, it does not look to be the case that bulls will be able to make gains towards $65.08. It is likely there will be a pullback to the lows of this morning at $60.53 and another leg lower towards $58.54, with the 55-day Simple Moving Average (SMA) nearby providing support.

LTC/USD Daily chart

LTC/USD Daily chart

To the upside,  there is the possibility of another move higher, that could place price action firmly above that monthly R1, should the US take over positive sentiment. In such a scenario, price action could trade against that $65.08 in a squeeze to the upside. Should another buy-wave occur, expect to see price action pierce through that level, and in case of a daily close above, it could be fruitful for the rest of the trading week, with possibly $72 in reach by Friday.


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