- Litecoin price extended its decline below the $110 support zone against the US Dollar.
- LTC price is now trading below $120 and the 55 simple moving average (4-hours).
- There was a break above a crucial bearish trend line with resistance near $114 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair could start a decent increase above the $118 and $120 resistance levels in the near term.
Litecoin price is attempting a recovery above $110 against the US Dollar, similar to bitcoin. LTC price must clear $120 to start a decent increase in the near term.
Litecoin Price Analysis
This week, there was a downside extension in bitcoin, ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC failed to stay above the main $120 support level.
The price even broke the $110 support level and settled well below the 55 simple moving average (4-hours). It traded as low as $104 before it started an upside correction. It climbed above the $110 and $112 resistance levels.
There was a break above the 23.6% Fib retracement level of the key decline from the $140 swing high to $104 low. Besides, there was a break above a crucial bearish trend line with resistance near $114 on the 4-hours chart of the LTC/USD pair.
The pair is now trading near the $118 and $120 resistance levels. The 50% Fib retracement level of the key decline from the $140 swing high to $104 low is also near the $120 level.
The 55 simple moving average (4-hours) is also near the $120 zone. A clear break and close above $120 could open the doors for a decent increase. The next major resistance is near the $135. On the downside, the $110 level is a strong support. If there is a close below $110, the price might dive towards the $100 level.
Looking at the chart, litecoin price is clearly trading well below $120 and the 55 simple moving average (4-hours). Overall, the price could start a decent increase above the $118 and $120 resistance levels in the near term.
Technical indicators
4 hours MACD – The MACD for LTC/USD is slowly gaining pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now above the 50 level.
Key Support Levels – $110 and $100.
Key Resistance Levels – $120 and $130.
