- 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.
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.