Litecoin price declined heavily from well above $40.00. The recent decline in bitcoin, Ethereum, EOS and tron impacted LTC’s market sentiment towards $30.00.
Key Talking Points
- Litecoin price declined more than 20% from well above the $40.00 level (Data feed of Kraken) against the US Dollar.
- There was a break below a crucial bullish trend line with support at $38.50 on the hourly chart.
- LTC price remains at a risk of more losses, but the $30.00 support may protect further slides.
Litecoin Price Analysis
This past week, we saw a solid upward move above the $38.00 resistance in litecoin price against the US dollar. The LTC/USD pair even broke the $40.00 barrier and traded close to the $41.50 level.
Looking at the chart, LTC price traded as high as $41.13 and later started a downward move. Recently, sellers gained control and pushed the price below the $40.00 and $38.00 support levels.
Sellers pushed the price below the $35.00 support and the 100 hourly simple moving average. Besides, there was a break below a crucial bullish trend line with support at $38.50 on the hourly chart. It opened the doors for more losses below $34.00.
The price traded below the 61.8% Fib retracement level of the last wave from the $30.97 low to $41.13 high. The current price action is super bearish below $34.00 and the 76.4% Fib retracement level of the last wave from the $30.97 low to $41.13 high.
Therefore, there is a risk of more losses below the $32.00 support. The next major support is at $30.00, below which the price may extend losses towards $28.00. On the upside, an initial resistance is at $34.30, above which the price may test $35.00.
Overall, litecoin price clearly moved back in a bearish zone below $38.00 and $36.00. If sellers remain in action, there are chances of further losses below $32.00 and $30.00. On the flip side, LTC must move back above $38.00 to gain bullish traction in the near term.
The market data is provided by TradingView.
