- Litecoin price extended its decline below the $46.00 support zone against the US Dollar.
- LTC price traded as low as $41.69 and settled well below the 55 simple moving average (4-hours).
- There is a key bearish trend line forming with resistance near $46.50 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair is likely to face a strong selling interest near the $46.00 and $46.50 levels in the near term.
Litecoin price is currently trading in a bearish zone below the $46.00 support against the US Dollar, similar to bitcoin. LTC price remains at a risk of more downsides below $40.00.
Litecoin Price Analysis
In the past few sessions, there was a downside extension in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC price failed to stay above the $50.00 support level and started a fresh decline.
It broke a couple of important supports near the $46.00 level to move into a bearish zone. There was also a close below the $45.00 support and the 55 simple moving average (4-hours). The price traded to a new weekly low at $41.69 and it is currently correcting higher.
There was a break above the $42.50 level, plus the 23.6% Fib retracement level of the recent decline from the $51.46 high to $41.69 low. On the upside, there are many hurdles for the bulls, starting with the $45.00 level.
The main resistance is forming near the $46.00 level. There is also a key bearish trend line forming with resistance near $46.50 on the 4-hours chart of the LTC/USD pair. The trend line coincides with the 50% Fib retracement level of the recent decline from the $51.46 high to $41.69 low.
To move into a positive zone, the price must move above the $45.00 and $46.50 resistance levels. If the bulls fail, there is a risk of more losses below the $42.00 and $41.00 levels.
The next major support is near the $40.00 level, below which the bears are likely to aim a larger decline. In the stated case, the price could even test $36.00.
Looking at the chart, litecoin price is clearly trading in a bearish zone below $46.00 and $45.00. Overall, the price likely to face a strong selling interest near the $46.00 and $46.50 levels in the near term.
Technical indicators
4 hours MACD – The MACD for LTC/USD is struggling to gain momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is currently just below the 40 level.
Key Support Levels – $42.00 and $40.00.
Key Resistance Levels – $45.00 and $46.50.
