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HomeAltcoin NewsLitecoin (LTC) Price Analysis: Recovery Likely To Fail Near $60-$62

Litecoin (LTC) Price Analysis: Recovery Likely To Fail Near $60-$62

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  • Litecoin price declined heavily and broke the $62.00 support area against the US Dollar.
  • LTC price is traded towards the $50.00 support area and it is currently consolidating losses.
  • There was a break below a major bullish trend line with support near $71.40 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
  • The pair could correct higher, but it is likely to face resistance near $60.00 or $62.80.

Litecoin price is trading in a bearish zone against the US Dollar and bitcoin. LTC price remains at a risk of more downsides below the $52.00 and $50.00 levels.

Litecoin Price Analysis

This week, there was a nasty decline in litecoin price from the $75.00 resistance against the US Dollar. The LTC/USD pair broke many key supports near the $72.50 and $70.00 levels to move into a downtrend. More importantly, there was a close below the main $70.00 support area and the 55 simple moving average (4-hours). It opened the doors for more downsides below $65.00.

Moreover, there was a break below a major bullish trend line with support near $71.40 on the 4-hours chart of the LTC/USD pair. As a result, there was a sharp drop below the $64.00 and $62.80 support levels. Finally, the price traded close to the $50.00 support and formed a low at $53.10. At the moment, the price is consolidating losses above the $53.00 level.

An immediate resistance is near the $58.00 level. However, the first key resistance is near the $60.00 level. It coincides with the 23.6% Fib retracement level of the recent significant decline from the $80.32 high to $53.10 low. If there is an upside break above the $60.00 level, the price could recover towards the next key resistance at $62.80 and $63.95. The stated resistance near $63.00 acted as a support earlier and now it could prevent gains.

Conversely, the price could resume its decline if it fails to climb above $60.00. An immediate support is near the $52.50 level. The main support is near the $50.00 level, below which there is a risk of a breakdown towards the $40.00 support in the near term.

Litecoin Price Analysis LTC Chart

Looking at the chart, litecoin price is clearly trading in a bearish zone below the $62.80 and $60.00 support levels. As long as the price is below $65.00, there is a risk of more downsides. Having said that, it won’t be easy for the bears to push the price below the $50.00 support.

Technical indicators

4 hours MACD – The MACD for LTC/USD is slowly reducing its bearish slope.

4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is currently correcting higher towards the 40 level.

Key Support Levels – $52.20 and $50.00.

Key Resistance Levels – $60.00 and $62.80.

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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