- Litecoin price started an upside correction from the $41.50 support zone against the US Dollar.
- LTC price is now trading well below the $42.50 level and the 55 simple moving average (4-hours).
- There is a crucial bearish trend line forming with resistance near $44.50 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair could struggle to clear the $44.50 and $45.00 resistance levels in the near term.
Litecoin price is slowly moving higher towards $45.00 against the US Dollar, while bitcoin gained 3%. LTC price must surpass the $44.50 resistance zone to continue higher.
Litecoin Price Analysis
In the past few sessions, there was a decent recovery in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC price extended its decline below the $42.20 support level.
However, the price found a strong support near the $41.50 level. A support base was formed above $41.50 and the price recently started an upside correction. It surpassed the $42.50 level and the 55 simple moving average (4-hours).
There was a break above the 50% Fib retracement level of the downward move from the $45.55 high to $40.86 low. The price is now testing the $44.00 resistance area.
On the upside, there is a crucial bearish trend line forming with resistance near $44.50 on the 4-hours chart of the LTC/USD pair. The trend line is close to the 76.4% Fib retracement level of the downward move from the $45.55 high to $40.86 low.
Litecoin price must surpass the $44.50 resistance zone and the trend line to continue higher. The next major resistance on the upside is near the $45.50 level, above which the bulls might aim a test of $50.00.
Conversely, the price may perhaps fail to clear the $44.50 resistance. An initial support is near the $43.20 level. The first major support is near the $43.00 level and the 55 simple moving average (4-hours). Any further losses may perhaps lead the price back towards the main $41.50 support zone.
Looking at the chart, litecoin price is clearly approaching a couple of important hurdles near $44.50. It could either start a strong rally above the $44.50 resistance or it might resume its decline towards the $41.50 level.
Technical indicators
4 hours MACD – The MACD for LTC/USD is currently gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now well above the 55 level.
Key Support Levels – $43.00 and $41.50.
Key Resistance Levels – $44.50 and $45.50.
