- Litecoin price started a fresh decline below the $135 and $130 support levels against the US Dollar.
- LTC price is trading just above the $120 support and it is well below the 55 simple moving average (4-hours).
- There was a break below a key bullish trend line with support near $136 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair could correct higher, but it is likely to face many hurdles such as $135 and $140.
Litecoin price is showing bearish signs below $135 against the US Dollar, similar to bitcoin. LTC price could dive if there is a clear break and close below $120.
Litecoin Price Analysis
This week, there was a fresh decline in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC made an attempt to gain strength above the $150 resistance level, but it failed.
The recent swing high was formed near $148 before the price started a fresh decline. There was a clear break below the $135 support level and the price settled below the 55 simple moving average (4-hours).
There was also a break below a key bullish trend line with support near $136 on the 4-hours chart of the LTC/USD pair. The pair even broke the $125 support and spiked below $120. A low is formed near $118 and the price is currently consolidating losses above $120.
It is testing the 23.6% Fib retracement level of the downward move from the $148 swing high to $118 low. The first major resistance is near the $132 level.
The 50% Fib retracement level of the downward move from the $148 swing high to $118 low is also near $133 to act as a hurdle. The main resistance is now forming near the $140 level and the 55 simple moving average (4-hours).
There is also a connecting bearish trend line with resistance near $140 on the same chart. If there is no upside break above $132 or $140, there is a risk of more downsides. An initial support is near the $120 level. If there is a clear break below $120 and $118, the price could dive towards the $100 support.
Looking at the chart, litecoin price is clearly trading in a bearish zone below $132 and $135. Overall, the price could correct higher, but it is likely to face many hurdles such as $135 and $140 in the near term.
Technical indicators
4 hours MACD – The MACD for LTC/USD is currently losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is well below the 50 level.
Key Support Levels – $120 and $100.
Key Resistance Levels – $132 and $140.
