HomeAltcoin NewsLitecoin (LTC) Price Analysis: Risk of Additional Losses Below $40

Litecoin (LTC) Price Analysis: Risk of Additional Losses Below $40

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  • Litecoin price is struggling to stay above the $40.00 support area against the US Dollar.
  • LTC price is likely to accelerate its decline if its breaks the $39.00 support area.
  • There is a key bearish trend line forming with resistance near $41.50 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
  • The pair might recover once it climbs above $41.50 and $42.00 in the near term.

Litecoin price is showing a few bearish signs against the US Dollar, similar to bitcoin. LTC price remains at a risk of additional losses below $40.00 and $39.00.

Litecoin Price Analysis

Recently, there was a decent upward move in bitcoin, Ethereum ripple and litecoin against the US Dollar, but later all trimmed gains. It seems like LTC price struggled to clear the $42.50 resistance area.

A high is formed near $42.68 and the price is currently declining. It traded below the $42.00 and $41.50 support levels. Moreover, there was a break below the 23.6% Fib retracement level of the upward move from the $35.82 low to $42.68 high.

The price is now trading near the $40.00 level and below the 55 simple moving average (4-hours). An immediate support is near the $39.25 level. It represents the 50% Fib retracement level of the upward move from the $35.82 low to $42.68 high.

If there is a downside break and close below $39.25, there is a risk of additional losses in litecoin. The next stop for the bears might be $37.44 or the 76.4% Fib retracement level of the upward move from the $35.82 low to $42.68 high.

On the upside, there are many hurdles for the bulls near the $41.50 and $42.00 levels. Furthermore, there is a key bearish trend line forming with resistance near $41.50 on the 4-hours chart of the LTC/USD pair.

Therefore, a successful close above the $42.00 resistance is needed for a decent recovery. Still, the price must gain momentum above the $42.50 resistance to set the stage for a larger upward move in the near term.

Litecoin Price
Litecoin Price

Looking at the chart, litecoin price is showing a few bearish signs below $41.50 and $42.00. As long as there is no upside break above $42.00, there are chances of more losses below the $39.25 and $37.40 support 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 well below the 50 level.

Key Support Levels – $39.25 and $38.00.

Key Resistance Levels – $41.50 and $42.00.

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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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