Litecoin Price Analysis

Litecoin (LTC) Price Analysis: Another Possible Dip Before Fresh Rally

Litecoin price topped above the $53.00 level and later declined sharply against the US dollar. LTC is currently correcting higher, but the $47.50 resistance could prevent gains.

Key Talking Points

  • Litecoin price declined heavily and broke the $50.00 and $47.50 supports (Data feed of Kraken) against the US Dollar.
  • There is a short term ascending channel formed with resistance near $47.50 on the hourly chart.
  • LTC price corrected higher, but the previous support at $46.50 and $47.50 are acting as hurdles.

Litecoin Price Analysis (LTC)

Recently, we saw a nice upward move in litecoin price above the $50.00 resistance against the US dollar. The LTC/USD pair even traded above the $52.00 level before sellers appeared near the $53.50 level and later the price declined sharply.

Litecoin Price Analysis LTC Chart

Looking at the chart, LTC price topped near the $53.47 level and later declined below the $50.00 support area. More importantly, there was a break below the key supports near the $47.50 and $46.50 levels, opening the doors for more losses.

The price even settled below the $47.50 level and the 100 hourly simple moving average. A low as formed at $42.48 and later the price corrected higher. It moved above the $44.00 level and the 23.6% Fib retracement level of the recent decline from the $53.47 high to $42.48 low.

However, the upside move faced sellers near the previous support at $46.50 and $47.50. The next key resistance is near the $48.00 level and the 100 hourly simple moving average.

Besides, the 50% Fib retracement level of the recent decline from the $53.47 high to $42.48 low is also near the $48.00 level. At the outset, there is a short term ascending channel formed with resistance near $47.50 on the hourly chart.

It seems like litecoin price might test the $47.50 and $48.00 resistance levels in the near term. If LTC buyers fail to gain strength above $48.00, there could be a bearish reaction. On the downside, an initial support is at $44.00, below which the price could revisit the $42.50 support in the coming sessions.

The market data is provided by TradingView.

About author

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets Reach Aayush via email: aayushjindal@ethereumworldnews.com
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