HomeAltcoin NewsLitecoin (LTC) Price Analysis: Primed To Test $50 Before Higher

Litecoin (LTC) Price Analysis: Primed To Test $50 Before Higher

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  • Litecoin price is facing an increase in selling interest below $60.00 against the US Dollar.
  • LTC price is currently trading below the key $59.80 and $57.00 support levels.
  • There is a crucial bearish trend line forming with resistance near $57.10 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
  • The pair is likely to break the $54.00 support area and continue lower in the near term.

Litecoin price is back in a downtrend against the US Dollar and bitcoin. LTC price remains at a risk of more downsides as long as it is below $60.00.

Litecoin Price Analysis

In the past few days, there were steady downsides in bitcoin, Ethereum, ripple and litecoin against the US Dollar. LTC price broke the main $60.00 support area to enter a bearish zone.

Moreover, there was a break below the $57.00 support area and 55 simple moving average (4-hours). Finally, the price traded below the $55.00 level and formed a new monthly low at $54.06.

At the moment, the price is consolidating losses above the $54.00 level. An initial resistance is near the $55.40 level. Besides, the 23.6% Fib retracement level of the recent decline from the $59.88 high to $54.06 low is also near the $55.40 level.

More importantly, there is a key bearish pattern forming with resistance near $55.20 on the 4-hours chart of the LTC/USD pair. If there is an upside break above the $55.40 resistance, litecoin could test the next resistance near the $57.00 level.

The 50% Fib retracement level of the recent decline from the $59.88 high to $54.06 low is near the $57.00 area to stop the upward move. Additionally, there is a crucial bearish trend line forming with resistance near $57.10 on the 4-hours chart of the LTC/USD pair.

Above the trend line, the 55 simple moving average (4-hours) is near the $58.00 level. The main resistance is near the $60.00 level, above which the price is likely to start an uptrend.

Conversely, the price could continue to move down below the $55.00 and $54.00 support levels. A clear break below the $54.00 support could push the price towards the $50.00 support.

Litecoin Price
Litecoin Price

Looking at the chart, litecoin price is clearly forming another bearish breakdown pattern with support near $54.80and $54.00 levels. Therefore, there is a risk of more losses below $54.00 and $52.00 unless the price climbs above $58.00 and $60.00.

Technical indicators

4 hours MACD – The MACD for LTC/USD is currently moving in the bearish zone.

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

Key Support Levels – $54.00 and $50.00.

Key Resistance Levels – $58.00 and $60.00.

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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