HomeAltcoin NewsLitecoin (LTC) Price Analysis: Downside Thrust Before Fresh Increase?

Litecoin (LTC) Price Analysis: Downside Thrust Before Fresh Increase?

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  • Litecoin price started a downside correction from the $50.00 resistance against the US Dollar.
  • LTC price declined below the $48.00 support and it is currently consolidating near $45.00.
  • There was a break below a major bullish trend line with support near $46.40 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
  • The pair could spike towards the $4.50 support area before it might start a fresh increase.

Litecoin price is slowly moving lower towards key supports against the US Dollar and bitcoin. LTC price must stay above the $43.50 support to start a fresh upward move.

Litecoin Price Analysis

Earlier this week, there were mostly range moves Ethereum, ripple, and litecoin against the US Dollar, while bitcoin climbed a few points higher. Earlier, LTC price topped near the $50.99 level and started a fresh decline.

There was a break below the $48.00 and $47.50 support levels. The price even broke the $47.00 support zone and settled below the 55 simple moving average (4-hours).

During the decline, there was a break below a major bullish trend line with support near $46.40 on the 4-hours chart of the LTC/USD pair. The pair spiked below the 50% Fib retracement level of the main upward move from the $39.58 low to $50.99 high.

On the downside, there is a crucial support forming near the $44.00 and $43.50 levels. The 61.8% Fib retracement level of the main upward move from the $39.58 low to $50.99 high is also near the $43.94 level.

At the moment, the price is rising, but the broken trend line at $46.50 is acting as a resistance. Therefore, there are chances of a downside spike towards the $44.00 and $43.50 support levels.

If the bulls defend the $43.50 support zone, the price is likely to start a fresh increase. On the upside, litecoin is facing hurdles near the $47.00 level and the 55 simple moving average (4-hours).

A successful close above the 55 simple moving average (4-hours) is needed for a strong increase above $48.00. In the mentioned case, there are chances of a push towards the $52.00 and $55.00 levels in the near term.

Litecoin Price
Litecoin Price

Looking at the chart, litecoin price is clearly approaching a few important support near $44.00 and $43.50. As long as there is no close below $43.50, the price is likely to rise above the $48.00 and $50.00 levels.

Technical indicators

4 hours MACD – The MACD for LTC/USD is slowly losing momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now correcting high towards the 45-50 zone.

Key Support Levels – $44.00 and $43.50.

Key Resistance Levels – $48.00 and $50.00.

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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