HomeAltcoin NewsLitecoin (LTC) Price Analysis: Signs of Fresh Decrease To $40

Litecoin (LTC) Price Analysis: Signs of Fresh Decrease To $40

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  • Litecoin price failed to clear the $47.50 level and declined recently against the US Dollar.
  • LTC price is now trading below the $45.00 level, with a bearish angle.
  • There is a key bearish trend line forming with resistance near $46.60 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
  • The pair could correct higher, but it remains at a risk of more losses below $44.00 and $42.00.

Litecoin price is showing signs of another bearish wave against the US Dollar and bitcoin. LTC price must stay above the $40.00 support zone to avoid a major downside reversal.

Litecoin Price Analysis

After a steady rise, there was a fresh decrease in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC price gained bullish momentum above the $44.00 and $45.00 levels.

The price even traded above the $46.50 resistance and settled above the 55 simple moving average (4-hours). However, it faced a strong selling interest near the $47.00 and $47.50 levels.

A high was formed near $47.44 and the price recently started a fresh decline. More importantly, there is a key bearish trend line forming with resistance near $46.60 on the 4-hours chart of the LTC/USD pair.

The pair was rejected near the trend line before it declined below $45.00. The price traded below the 23.6% Fib retracement level of the upward move from the $39.37 low to $47.44 high.

Litecoin is now trading near the $44.00 support and the 55 simple moving average (4-hours). It is testing the 50% Fib retracement level of the upward move from the $39.37 low to $47.44 high. If there is a break below the $44.00 level and the 55 SMA, the price could dive towards the $42.00 support.

The main supports are near $41.00 and $40.00, below which there is a risk of a larger bearish wave in the near term. On the upside, the $46.50 and $47.50 levels are important barriers. To move into a positive zone, the price must break the trend line and continue higher towards the $50.00 level.

Litecoin Price
Litecoin Price

Looking at the chart, litecoin price is clearly showing a few bearish signs and it remains at a risk of more losses below $44.00 and $42.00. However, the price is likely to find bids near the $40.00 support.

Technical indicators

4 hours MACD – The MACD for LTC/USD is slowly moving into the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now below the 50 level, with a bearish angle.

Key Support Levels – $41.00 and $40.00.

Key Resistance Levels – $46.50 and $47.50.

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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