Technical Analysis for Litecoin looks promising

Technical Analysis for Litecoin looks promising.

After a 70% decline from the all-time high at $374, Litecoin found the support at 76.4% Fibonacci retracement level, that is $110 area. Although price spiked lower it closed above the Fibs support and also above the 8/1 Gann Fan trendline closed above.

The bullish divergence was formed on the RSI oscillator suggesting the continuation of the long-term uptrend. While the price already looks attractive many traders could be waiting for more confirmations in order to reduce the risk. Next confirmation would be the break above the 200 Moving Average as well as the descending channel.

Upon confirmation, LTC/USD should continue moving up towards major resistance area between $290 and $310. At that point profit taking could take place or as an alternative break above, which should push price much higher, to the new all-time high.

On a downside, only a weekly break and close below the $100 psychological support level could invalidate bullish outlook.