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Litecoin (LTC) Price Analysis: Risk Of A Nasty Breakdown

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  • Litecoin price declined heavily below the $85.00 and $80.00 supports against the US Dollar.
  • LTC price is currently under a lot of pressure and it could even decline below the $70.00 support.
  • There is a significant declining channel forming with resistance near $74.00 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
  • The pair could correct higher if there is a recovery above the $75.00 and $80.00 resistances.

Litecoin price is trading in a major downtrend against the US Dollar and bitcoin. LTC is likely to decline heavily if it breaks the $70.00 support level in the near term.

Litecoin Price Analysis

In the past two weeks, litecoin price declined steadily from well above the $90.00 level against the US Dollar. The LTC/USD pair broke many important supports near the $85.00 and $80.00 levels. Moreover, there was a close below the $80.00 level and the 55 simple moving average (4-hours). The price even broke the $75.00 support and it recently traded to a new monthly low at $70.15.

It is currently consolidating losses above the $70.00 support. An immediate resistance is near the $74.00 level plus the 50% Fib retracement level of the recent drop from the $79.17 high to $70.15 low. Moreover, there is a significant declining channel forming with resistance near $74.00 on the 4-hours chart of the LTC/USD pair. Above the channel resistance, the next resistance is near the $76.00 level.

The 61.8% Fib retracement level of the recent drop from the $79.17 high to $70.15 low might also act as a resistance. Additionally, the 55 simple moving average (4-hours) is near the $77.00 level to prevent gains. The main resistance on the upside is near the $80.00 zone, where litecoin bulls are likely to struggle if the price corrects higher. On the downside, the main support is near the $70.00 level.

If the price slides below $70.00, it could spark heavy bearish moves. The next stop for the bears may perhaps be $65.00 or $62.00. If the bears remain in action, the price might even test the $60.00 level.

Litecoin Price Analysis LTC Chart

Looking at the chart, litecoin price is clearly trading in a major downtrend below $75.00 and $80.00. To start a strong upward move, the price must break $75.00, the 55 SMA, and $80.00. If not, it is likely to continue its decline below the $70.00 support level. The next stop could be near $60.00.

Technical indicators

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

4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is currently correcting towards the 50 level.

Key Support Levels – $70.00 and $65.00.

Key Resistance Levels – $75.00 and $80.00.

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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