- Litecoin price started a sharp decline after it failed to clear the $45.00 resistance against the US Dollar.
- LTC price is now trading well below $43.50 and the 55 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $44.50 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair remains at a risk of another decline if it fails to stay above $41.00 and $40.00.
Litecoin price is trading in a bearish zone against the US Dollar, similar to bitcoin. LTC price could nosedive if it trades below the $40.00 support zone.
Litecoin Price Analysis
In the past few hours, there was a significant decline in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC price failed to clear the main $45.00 resistance area, resulting in a bearish reaction.
The price traded below the $43.20 support zone and settled below the 55 simple moving average (4-hours). The decline was such that the price even spiked below the $42.00 support. It traded as low as $41.62 and currently consolidating losses.
An initial resistance is near the $42.40 level or the 23.6% Fib retracement level of the recent slide from the $44.69 high to $41.62 low. The first major resistance could be near the $43.20 and $43.10 levels.
The 50% Fib retracement level of the recent slide from the $44.69 high to $41.62 low is also near the $43.10 level. The main resistance is still near the $44.50 and $45.00 levels. There is also a major bearish trend line forming with resistance near $44.50 on the 4-hours chart of the LTC/USD pair.
Therefore, litecoin price must surpass the $44.50 and $45.00 resistance levels to start a strong increase. On the downside, the $41.50 region is a strong support. If the bulls fail to keep the price above $41.50, there is a risk of more downsides below the $40.00 support.
A successful break below $41.50 and a close below $40.00 will most likely start a major downtrend. The next key support is seen near the $36.50 level.
Looking at the chart, litecoin price is clearly trading near a major support zone at $41.50. Therefore, it could either start a decent upside correction or there might be another sharp decline below $41.50 or even $40.00.
Technical indicators
4 hours MACD – The MACD for LTC/USD is moving heavily in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is currently well below the 40 level.
Key Support Levels – $41.50 and $40.00.
Key Resistance Levels – $43.20 and $45.00.
