Litecoin Price Prediction: Will $95 Hold or Could LTC Soar to $120?

Most cryptocurrencies have performed positively during this period ahead of this month’s interest rate decision from the Federal Open Market Committee (FOMC). However, LTC is outpacing most of its peers.

The consensus for this upcoming meeting of the Federal Reserve is that the federal funds rates will remain unchanged as the central bank continues to assess the impact of the current administration’s radical trade policies.

Litecoin has delivered gains of 36.4% in the past month as it rallied strongly following its 21-day EMA breakout.

Trading volumes have also been above the average in the past three days as the token nears a key area where selling pressure has been strong in previous instances.

Litecoin Rejected $95 Resistance Again

In our latest Litecoin analysis, we highlighted a strong order block and fair value gap that were acting as resistance for the price action.

The price declined for three days in a row after that article was published as selling pressure at $95 persisted.

Thus far in today’s session, LTC is once again experiencing a decline in the lower time frames that has already evaporated a big portion of yesterday’s gains.

Although it is not uncommon that market prices drop ahead of the Fed’s interest rate decision, it is not a coincidence that this decline has occurred as LTC tagged the $95 level once again.

The fair value gap is now out of the picture but the order block’s influence in the price action is quite evident. Hence, traders should keep an eye on how the price action unfolds in the next few days.

Multiple tags of an order block tend to reduce its relevance significantly and this one has been tagged twice already. Hence, LTC’s bullish outlook has not been fully invalidated yet.

Trading volumes have doubled the average in the past two days, emphasizing the relevance of this price level for market participants.

Today’s retreat also occurs as LTC tags its 200-day exponential moving average (EMA). The $95 level can be considered an area of confluence and should be closely watched.

A bullish breakout could result in huge gains for Litecoin in the near term, with a first target set at around $120 as bulls will take over the price action.

Key Areas of Support to Watch for LTC

Heading to a lower time frame, the 1-hour chart shows how strong this retreat has been as LTC has been going down non-stop in the past 8 hours.

There are three fair value gaps along the way that the market may find support at. The price structure is bullish and the nearest valid low currently sits at $81 per token.

LTC could find support at any of these FVGs. The price trend is clearly bullish so it doesn’t make much sense to go against it.

Statistically, the deepest FVGs offer the highest risk-reward ratio and probability of a positive outcome. Hence, the second and third FVGs in the chart from top to bottom would be the most probable scenario for a strong rebound if the price keeps dipping after the Fed’s speech.