HomeAltcoin NewsLitecoin (LTC) Price Analysis: Signaling Downside Extension Below $41

Litecoin (LTC) Price Analysis: Signaling Downside Extension Below $41

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  • Litecoin price is currently declining and trading well below $44.00 against the US Dollar.
  • LTC price is likely to continue lower below $41.00 and $40.00 in the near term.
  • There was a break below a major bullish trend line with support near $41.30 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
  • The pair might find support near $39.50 and start a fresh recovery above $42.00.

Litecoin price is struggling to rise above key hurdles against the US Dollar, similar to bitcoin. LTC price remains at a risk of another decline below $40.00 before recovering.

Litecoin Price Analysis

After a steady rise, bitcoin, Ethereum, ripple and litecoin struggled to continue higher against the US Dollar. LTC price faced a strong resistance near the $44.00 area and formed a high at $44.03 before correcting lower.

There was a break below the $42.60 support level. Moreover, the price traded below the 50% Fib retracement level of the upward move from the $39.37 low to $44.00 high.

The price is now trading below the $42.00 support and the 55 simple moving average (4-hours). Additionally, there was a break below a major bullish trend line with support near $41.30 on the 4-hours chart of the LTC/USD pair.

An immediate support for litecoin is near the $40.50 level. Besides, the 76.4% Fib retracement level of the upward move from the $39.37 low to $44.00 high is also near the $40.47 level.

If the price fails to stay above the $40.50 support, there is a risk of a downside extension below the $40.00 support. The next major support is near the $39.40 level (the last swing low).

Any further losses may perhaps lead the price towards the $38.20 support. It is close to the 1.236 Fib extension level of the upward move from the $39.37 low to $44.00 high.

On the upside, there are many hurdles for the bulls near the $42.00 and $42.60 levels. More importantly, the $44.00 level is a crucial resistance area. Therefore, a successful close above $44.00 and $45.00 is needed for a sustained upward move towards $50.00 and $52.00.

Litecoin Price
Litecoin Price

Looking at the chart, litecoin price is showing a few bearish signs below $42.00. It seems like there is a risk of a downside thrust below the $40.00 support area before there is a nice bounce above $42.00 and $42.60.

Technical indicators

4 hours MACD – The MACD for LTC/USD is slowly gaining momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is currently well below the 50 level.

Key Support Levels – $40.50 and $39.40.

Key Resistance Levels – $42.60 and $44.00.

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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