- 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.
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.