- 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.
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.