HomeAltcoin NewsLitecoin (LTC) Price Analysis: Bulls Facing An Uphill Task At $42.50

Litecoin (LTC) Price Analysis: Bulls Facing An Uphill Task At $42.50

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  • Litecoin price extended its decline and it even spiked below $40.00 against the US Dollar.
  • LTC price is now correcting higher towards $42.50 and the 55 simple moving average (4-hours).
  • There is a crucial bearish trend line forming with resistance near $42.50 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
  • The pair could either start a strong increase above $42050 or resume its decline towards $38.50.

Litecoin price is trading in a negative zone against the US Dollar, while bitcoin is recovering. LTC price could only start a strong recovery if it breaks the $42.50 resistance.

Litecoin Price Analysis

In the past few hours, there was a short-term upward move in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC price extended its decline below the $40.50 support level.

The price even spiked below the $40.00 support and settled well below the 55 simple moving average (4-hours). A new multi-week low is formed near $39.16 and the price is currently correcting higher.

It is trading above the $40.50 and $41.00 levels. There was a break above the 23.6% Fib retracement level of the downward move from the $44.67 high to $39.16 low. At the moment, the price is facing a strong resistance near the $42.20 and $42.50 levels, plus the 55 simple moving average (4-hours).

The 50% Fib retracement level of the downward move from the $44.67 high to $39.16 low is also preventing an upside break. More importantly, there is a crucial bearish trend line forming with resistance near $42.50 on the 4-hours chart of the LTC/USD pair.

Therefore, litecoin price must break the $42.50 resistance level to start a strong recovery wave. If the bulls succeed, the price might rise towards the $44.50 and $45.00 resistance levels in the near term.

Conversely, there is a risk of a fresh decline below the $40.50 and $40.00 support levels. In the mentioned case, the price may perhaps extend its decline below the $39.16 low and it could test the $38.50 support.

Litecoin Price
Litecoin Price

Looking at the chart, litecoin price is clearly trading near a crucial hurdle at $42.50. It could either start a strong increase above $42050 or resume its decline towards $38.50 in the near term.

Technical indicators

4 hours MACD – The MACD for LTC/USD is struggling to move into the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is currently just above the 50 level.

Key Support Levels – $40.50 and $40.00.

Key Resistance Levels – $42.50 and $44.50.

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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