- Litecoin price declined sharply after trading as high as $53.50 against the US Dollar.
- LTC price tested the $42.50 support and it is currently moving higher towards $50.00.
- There is a major bullish trend line in place with support at $44.00 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair is likely to break the $47.00 resistance to set the pace for a fresh rally above $50.00.
Litecoin price formed a strong support near $42.50 against the US Dollar. LTC is positioned nicely above $44.00 and it could soon break the $48.00 and $50.00 resistance levels.
Litecoin Price Analysis
Recently, there was a strong upward move in litecoin price above the $48.00 and $50.00 resistances against the US Dollar. The LTC/USD pair even broke the $52.00 level and traded towards the $53.50 level. Later, all major cryptos such as bitcoin, ripple, Ethereum, and bitcoin cash declined heavily. Litecoin also followed a similar pattern and declined heavily below the $50.00 support. It broke the $48.00 and $45.00 support levels to enter a bearish zone. There was even a close below the $48.00 level and the 55 simple moving average (4-hours).
However, the $42.50 support level acted as a crucial barrier for sellers. The price started consolidating above $42.50 and formed a support base. It corrected above the $45.00 level and the 23.6% Fib retracement level of the last decline from the $53.50 high to $42.53 low. At the outset, the price is facing a significant resistance near the $46.80 and $47.00 levels. Besides, the 55 simple moving average (4-hours) is also positioned near the $47.00 level.
The next key resistance is near the $48.00 level. It represents the 50% Fib retracement level of the last decline from the $53.50 high to $42.53 low. The current price action is positive and it seems like buyers could make an attempt to pierce the $47.00 and $48.00 resistance levels. If they succeed, the price could even break the $50.00 barrier and rally towards the $53.50 swing high.
Looking at the chart, litecoin price is clearly trading with a positive angle above $44.00. Once there is a clear break above $48.00, the price could start a fresh upward move. On the downside, there is a major bullish trend line in place with support at $44.00 on the same chart. Below $44.00, the price may retest the $42.50 support.
Technical indicators
4 hours MACD – The MACD for LTC/USD is gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now placed nicely above the 50 level, with a bullish angle.
Key Support Levels – $44.00 and $42.50.
Key Resistance Levels – $47.00 and $48.00.