- Litecoin price is recovering nicely and trading above $45.50 against the US Dollar.
- LTC price is currently trading near a major resistance area at $48.80 and $49.20.
- There is a significant bearish trend line forming with resistance near $48.60 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair is likely to surge higher once it clears the $49.20 and $50.00 resistance levels.
Litecoin price is attempting a crucial upside break against the US Dollar and bitcoin. LTC price could either rally above $50.00 or it might revisit the $42.60 support.
Litecoin Price Analysis
After a strong decline, there was a steady recovery in bitcoin, Ethereum, ripple and litecoin against the US Dollar. LTC price formed a support base near the $42.50 and $42.60 levels, and recently started upward move.
There was a break above the $44.20 and $45.00 resistance levels. Moreover, there was a break above the 23.6% Fib retracement level of the downward move from the $56.24 high to $42.19 low.
The price also climbed above the $46.00 level, but the price seems to be facing a strong hurdle near the $48.60 level. More importantly, there is a significant bearish trend line forming with resistance near $48.60 on the 4-hours chart of the LTC/USD pair.
Besides, litecoin price is also facing hurdles near the 50% Fib retracement level of the downward move from the $56.24 high to $42.19 low. Finally, the 55 simple moving average (4-hours) is near the $50.00 level.
Therefore, the price must rise above the $48.60 and $50.00 resistance levels to continue higher. The next key resistance is near the $54.15 level. An intermediate resistance is near $52.90 or the 76.4% Fib retracement level of the downward move from the $56.24 high to $42.19 low.
On the downside, an initial support is near the $47.00 and $46.80 levels. If there is a downside break below the $45.50 level, the price is likely to resume its decline.
The main support is near the $42.60 area, below which there is a risk of a sharp decline below the $40.50 and $40.00 support levels in the near term.
Looking at the chart, litecoin price is clearly approaching a significant resistance near the $48.60 area and the $50.00 handle. Therefore, the price could either rally above $50.00 or it might revisit the $42.60 support in the coming days.
Technical indicators
4 hours MACD – The MACD for LTC/USD is slowly losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now well above the 50 level, with a flat structure.
Key Support Levels – $45.50 and $42.60.
Key Resistance Levels – $48.60 and $50.00.
