- Litecoin price extended its decline below the $130 support zone against the US Dollar.
- LTC price is now trading below $132 and the 55 simple moving average (4-hours).
- There was a break below a major bullish trend line with support near $133 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair could start a fresh decline as long as it is below the $132 and $135 levels in the near term.
Litecoin price is struggling to recover above $132 against the US Dollar, similar to bitcoin. LTC price must clear $135 to start a decent increase in the near term.
Litecoin Price Analysis
This week, there was a downside extension in bitcoin, ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC failed to continue higher above the $140 resistance level.
It started a fresh decline and broke the key $132 support level. There was also a break below a major bullish trend line with support near $133 on the 4-hours chart of the LTC/USD pair. The pair even settled below the $132 level and the 55 simple moving average (4-hours).
Finally, there was a spike below the $125 level. A low was formed near $123 and the price is now correcting losses. It broke the $128 and $130 levels.
It is now testing the 50% Fib retracement level of the recent decline from the $140 swing high to $123 swing low. Besides, it is facing a strong resistance near the $132 level and 55 simple moving average (4-hours).
The 61.8% Fib retracement level of the recent decline from the $140 swing high to $123 swing low is also near the $133 level. Therefore, the price must break $132 and $133 to start a strong increase in the near term. The next key resistance is near the $140 level and $142. A close above the $142 level is needed for a push towards $150.
On the downside, the $125 level is a strong support. If there is a close below $125, the price might dive towards the $110 level.
Looking at the chart, litecoin price is clearly trading near $132 and the 55 simple moving average (4-hours). Overall, the price could start a fresh decline as long as it is below the $132 and $135 levels in the near term.
Technical indicators
4 hours MACD – The MACD for LTC/USD is slowly gaining pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now close to the 50 level.
Key Support Levels – $125 and $110.
Key Resistance Levels – $132 and $140.
