HomeAltcoin NewsLitecoin (LTC) Price Analysis: Primed For Downside Thrust

Litecoin (LTC) Price Analysis: Primed For Downside Thrust

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  • Litecoin price is sliding and it is now trading well below the $45.00 level against the US Dollar.
  • LTC price is under pressure and it could struggle to recover above $44.00 and $45.00.
  • There is a major bearish trend line forming with resistance near $44.80 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
  • The pair remains at a risk of more losses below the $42.80 and $42.50 levels in the near term.

Litecoin price is showing a lot of bearish signs against the US Dollar and bitcoin. LTC price is likely to extend decline and it might even break the $40.00 support.

Litecoin Price Analysis

In the past three days, there was a steady decline in bitcoin, Ethereum ripple and litecoin against the US Dollar. LTC price followed a bearish path from the $50.00 resistance and traded below many supports near $46.80.

Moreover, there was a close below the $45.50 level and the 55 simple moving average (4-hours). The decline gathered pace below the $45.00 level and the price traded to a new monthly low near the $42.84 level.

The price is currently consolidating losses above the $42.80 level. An initial resistance is near the $43.80 level. Additionally, it coincides with the 23.6% Fib retracement level of the downward move from the $46.37 high to $42.84 low.

The first main resistance is near the $44.60 level and the 55 simple moving average (4-hours). Besides, the 50% Fib retracement level of the downward move from the $46.37 high to $42.84 low is at $44.61.

More importantly, there is a major bearish trend line forming with resistance near $44.80 on the 4-hours chart of the LTC/USD pair. If there is an upside break above the $45.00 resistance, the price could start a decent recovery.

The next major resistance is near the $47.20 level. It is near the 1.236 Fib extension level of the downward move from the $46.37 high to $42.84 low.

Conversely, the price could continue to move down and it might soon trade below the $42.80 level. In the mentioned case, there is a risk of more losses below the $40.50 and $40.00 levels.

Litecoin Price
Litecoin Price

Looking at the chart, litecoin price is clearly trading in a downtrend below $45.00 and $46.00. It seems like the bears are eyeing a downside thrust below the $40.00 level before the price starts a real recovery.

Technical indicators

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

4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now well below the 40 level.

Key Support Levels – $41.80 and $40.00.

Key Resistance Levels – $44.60 and $45.00.

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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