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HomeAltcoin NewsLitecoin (LTC) Price Analysis: Bears Eye Losses Below $50

Litecoin (LTC) Price Analysis: Bears Eye Losses Below $50

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  • Litecoin price started a sharp decline after it broke the key $56.20 support against the US Dollar.
  • LTC price is now trading well below the $55.00 and $53.75 support levels.
  • There was a break below a crucial contracting triangle with support near $56.20 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
  • The pair remains at a risk of more downsides if it fails to stay above the $51.00 and $50.00 supports.

Litecoin price is declining and trading below $55.00 against the US Dollar, similar to bitcoin. LTC price could accelerate losses if it fails to hold the $50.00 support.

Litecoin Price Analysis

Earlier this week, litecoin price made an attempt to surpass the $58.00 resistance area against the US Dollar. However, the LTC/USD pair failed to gain strength above the $57.50 level and formed a swing high near $57.86. As a result, there was a fresh decline below the $56.50 and $55.00 support levels. Moreover, there was a close below the $55.00 level and the 55 simple moving average (4-hours).

During the decline, there was a break below a crucial contracting triangle with support near $56.20 on the 4-hours chart of the LTC/USD pair. The pair even broke the $53.75 support area and traded towards the $51.00 level. A low was formed recently near $51.16 and the price is currently consolidating losses. An immediate resistance is near the $52.80 level. Additionally, the 23.6% Fib retracement level of the recent decline from the $57.86 high to $51.16 low is also near the $52.74 level.

If there is an upside correction above $52.80, the price could test the $53.75 resistance area (the previous support). The next key resistance is near the $54.50 level. It represents the 50% Fib retracement level of the recent decline from the $57.86 high to $51.16 low. If there is an upside break above $54.50, litecoin could test the $56.20 resistance and the 55 simple moving average (4-hours).

On the downside, an immediate support is near the $51.00 level. If there is a downside break below the $51.00 support, the price might even struggle to hold the $50.00 support. The next major support is near the $48.00 and $47.50 levels.

Litecoin Price Analysis LTC Chart

Looking at the chart, litecoin price is clearly trading in a bearish zone below the $53.75 and $54.50 levels. As long as there is close above $56.20, there are chances of more downsides below $51.00.

Technical indicators

4 hours MACD – The MACD for LTC/USD is showing negative signs in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now well below the 30 level.

Key Support Levels – $51.00 and $50.00.

Key Resistance Levels – $53.75 and $54.50.

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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