- Litecoin declined towards $40 before starting an upside correction against the US Dollar.
- LTC price is now trading below $60 and the 55 simple moving average (4-hours).
- There is a key bearish trend line forming with resistance near $50 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair could decline heavily if it fails to clear the $50 resistance zone.
Litecoin price is recovering higher from $40 against the US Dollar, similar to bitcoin. LTC price could continue to move up if it clears the $50 resistance.
Litecoin Price Analysis
In the past few days, there was a strong decline in bitcoin, ethereum, ripple, and litecoin against the US Dollar. LTC followed a bearish path below the $60 level and extended losses.
There was a move below the $50 support and the 55 simple moving average (4-hours). The bears even pushed the price below the $45 level. However, the price remained well bid above the $40 level and started an upside correction.
There was a move above the $45 and $48 resistance levels. The price surpassed the 23.6% Fib retracement level of the downward move from the $65.43 swing high to $40.32 low.
LTC is now facing a strong resistance near the $50 level. Besides, there is a key bearish trend line forming with resistance near $50 on the 4-hours chart of the LTC/USD pair. The next major resistance is near the $53 level and the 55 simple moving average (4-hours).
The 50% Fib retracement level of the downward move from the $65.43 swing high to $40.32 low is also near the $53 level. To start a fresh increase, the price must clear $50 and $53.
On the downside, an immediate support is near the $46.20 level. The next key support is near the $40.80 level. If there is a downside break below the $40 support, the price could accelerate lower towards the $35 level in the near term.
Looking at the chart, litecoin price is clearly trading below $60 and the 55 simple moving average (4-hours). Overall, the price could decline heavily if it fails to clear the $50 resistance zone.
Technical indicators
4 hours MACD – The MACD for LTC/USD is now 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 – $46 and $40
Key Resistance Levels – $50 and $53.
