- Litecoin price extended its decline and broke the $40.00 support area against the US Dollar.
- LTC price traded to a new 2020 low at $25.02 and it is currently correcting higher.
- There is a major bearish trend line forming with resistance near $36.00 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair could correct higher, but it is likely to face a strong resistance near the $38.00 and $40.00 levels.
Litecoin price is trading in a bearish zone below $40.00 against the US Dollar, similar to bitcoin. LTC price could remain in a downtrend unless there is a close above $40.00.
Litecoin Price Analysis
This past week, there was a nasty decline in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. LTC price broke many key supports near the $40.00 level to move further into a bearish zone.
Moreover, there was a close below the $35.00 level and the 55 simple moving average (4-hours). Finally, there was a break below the $30.00 support and the price traded to a new 2020 low of $25.02.
Litecoin price is currently correcting higher and it recovered above the $30.00 level. There was a break above the 23.6% Fib retracement level of the key drop from the $64.08 high to $25.02 low.
At the moment, the price is testing the $35.00 and $36.00 resistance levels. Besides, there is a major bearish trend line forming with resistance near $36.00 on the 4-hours chart of the LTC/USD pair.
Above the trend line resistance, the next major hurdle is near the $38.00 level and the 55 simple moving average (4-hours). The main hurdle is still near the $40.00 level, above which the bulls are likely to aim a test of the $45.00 level.
The 50% Fib retracement level of the key drop from the $64.08 high to $25.02 low is also near the $44.50 level. Therefore, upsides are likely to remain capped towards the $38.00 and $40.00 levels.
On the downside an initial support is near the $32.00 level. If there is a bearish break below the $32.00 and $30.00 levels, the price could revisit the $25.00 swing low in the near term.
Looking at the chart, litecoin price is clearly facing a lot of hurdles on the upside, starting with $38.00. It could resume its decline below $32.00 unless it clears the $40.00 resistance area.
Technical indicators
4 hours MACD – The MACD for LTC/USD is losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is still below the 50 level.
Key Support Levels – $32.00 and $30.00.
Key Resistance Levels – $38.00 and $40.00.
