- Litecoin price started a sharp decline from the $80.00 resistance area against the US Dollar.
- LTC price broke the $75.00 support area to move into a short term bearish zone.
- There is a key bearish trend line forming with resistance near $75.80 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair could accelerate its losses if it breaks the $67.50 and $65.00 support levels.
Litecoin price is showing bearish signs against the US Dollar, similar to bitcoin. LTC price could decline heavily if it fails to stay above the $65.00 support area.
Litecoin Price Analysis
Recently, there was a strong decline in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC price climbed above the $75.00 resistance area. However, it failed to gain momentum above the $80.00 resistance area and the 55 simple moving average (4-hours).
A swing high was formed near $79.81 and the price started a strong decline. It broke a couple of important supports near the $75.00 level to move into a short term bearish zone.
The decline was such that the price spiked below the $70.00 level and tested the $68.00 support area. A swing low is formed near $67.67 and the price is currently consolidating losses.
An initial resistance is near the $70.50 level. It coincides with the 23.6% Fib retracement level of the recent decline from the $79.81 high to $67.63 low. On the upside, there are many hurdles near the $70.00 and $72.50 levels.
Besides, the 50% Fib retracement level of the recent decline from the $79.81 high to $67.63 low is near the $73.70 level to act as a resistance. There is also a key bearish trend line forming with resistance near $75.80 on the 4-hours chart of the LTC/USD pair.
Therefore, a clear break above the $72.00 and $75.00 levels could be difficult in the near term. On the downside, the main support is near the $68.00 area. If the price fails to stay above the $68.00 support, there is a risk of a sharp decline below the $65.00 level in the coming sessions.
Looking at the chart, litecoin price is clearly back in a short term bearish zone, but the $68.00 area holds the key. If the bulls fail to defend $68.00, there could be another sharp decline in the near term.
4 hours MACD – The MACD for LTC/USD is gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now well below the 50 level.
Key Support Levels – $68.00 and $65.00.
Key Resistance Levels – $75.00 and $75.00.