- Litecoin started a major decline from the $130 resistance against the US Dollar.
- LTC price is now trading below $120 and the 55 simple moving average (4-hours).
- There was a break below a key contracting triangle with support near $124 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair could extend losses if there is a move below the $110 level.
Litecoin price is gaining bearish pace below $120 against the US Dollar, similar to bitcoin. LTC price could extend losses if there is a move below $110.
Litecoin Price Analysis
This week, there was a key decline in bitcoin, ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC struggled to clear the $130 resistance zone.
The price formed a top near $130 and started a major decline. There was a clear move below the $125 support level. There was also a break below a key contracting triangle with support near $124 on the 4-hours chart of the LTC/USD pair.
The pair settled below $120 and the 55 simple moving average (4-hours). It even tested the $110 level and is currently consolidating losses. On the upside, an initial resistance is near the $115 level.
The 23.6% Fib retracement level of the recent decline from the $130 swing high to $110 low is also near the $115 level. The first major resistance is near the $118 level. The main resistance is now forming near the $120 pivot level.
The 50% Fib retracement level of the recent decline from the $130 swing high to $110 low is also near $120. To start a fresh increase, the price must clear $118 and $120. In the stated case, the price could rise towards $130. The next key resistance could be $135.
On the downside, an immediate support is near the $110 level. The next key support is near the $105 level. If there is a downside break below the $105 support, the price could continue to move down towards the $100 level.
Looking at the chart, litecoin price is clearly trading below $120 and the 55 simple moving average (4-hours). Overall, the price could extend losses if there is a move below the $110 level.
Technical indicators
4 hours MACD – The MACD for LTC/USD is now gaining pace in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now below the 50 level.
Key Support Levels – $110 and $100
Key Resistance Levels – $118 and $120.
