HomeAltcoin NewsLitecoin (LTC) Price Analysis: Bears Are Back, $100 Holds Key

Litecoin (LTC) Price Analysis: Bears Are Back, $100 Holds Key

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  • Litecoin price failed to climb above $125.00 and declined heavily against the US Dollar.
  • LTC price is down more than 15% and it recently broke the $110.00 and $105.00 support levels.
  • There is a major bearish trend line forming with resistance near $118.80 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
  • The pair must stay above the $100.00 support to start a decent recovery in the near term.

Litecoin price declined heavily from the $125.00 resistance area against the US Dollar, similar to bitcoin. LTC price is currently under pressure and testing the key $100.00 support area.

Litecoin Price Analysis

In the past few days, litecoin price made a few attempts to break the $125.00 resistance against the US Dollar. The LTC/USD pair failed to gain momentum above $125.00 and started a sharp decline. It broke a few important supports near $120.00 and $115.00 to enter a bearish zone. Moreover, there was a close below the $110.00 support and the 55 simple moving average (4-hours).

The recent decline was such that the price even broke the $100.00 support area. A new monthly low was formed at $95.33 and the price is currently trading with a bearish zone. An initial resistance is near the $102.50 level plus the 23.6% Fib retracement level of the last drop from the $125.88 high to $95.33 low. On the upside, there are many important resistances near the $110.00 and $111.50 levels.

Moreover, the 50% Fib retracement level of the last drop from the $125.88 high to $95.33 low is near the $110.81 level to act as a resistance. There is also a major bearish trend line forming with resistance near $118.80 on the 4-hours chart of the LTC/USD pair. The 55 simple moving average (4-hours) is also near the $118.00 resistance. Therefore, an upside correction could find resistance near $110.00 or $118.00.

On the downside, the main supports are near $100.00 and $95.00. If there is a daily close below $100.00, the price could move into a strong bearish zone. In the mentioned case, it could even decline towards the $92.00 or $84.00 support level in the near term.

Litecoin Price Analysis LTC Chart

Looking at the chart, litecoin price is clearly trading in a bearish zone below the $110.00 level. As long as it is below the $110.00 pivot level, there is a risk of more losses towards the $92.00 or $84.00 support.

Technical indicators

4 hours MACD – The MACD for LTC/USD is currently gaining momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is currently well below the 30 level, with a bearish angle.

Key Support Levels – $100.00 and $95.00.

Key Resistance Levels – $105.00 and $110.00.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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