Litecoin price corrected higher recently, but struggled near the $135.00 resistance. LTC is currently testing the $122.00 support and it remains at a risk of more losses
Key Talking Points
- Litecoin price is trading well below the $130.00 and $135.00 resistance levels (Data feed of Kraken) against the US Dollar.
- There are two connecting bearish trend lines forming with resistance near $132.50 on the 4-hours chart.
- LTC price could extend losses if there is a break below the $122.00 and $120.00 supports.
Litecoin Price Analysis (LTC)
Recently, there were bearish moves in bitcoin, Ethereum, ripple, EOS and Litecoin against the US Dollar. Earlier, the LTC/USD pair started a decent recovery from the $107.14 low. The pair traded above the $122.00 resistance, but it struggled to clear the $135.00 area.
Looking at the chart, LTC price traded as high as $136.45 and struggled to settle above the 100 simple moving average (4-hours). Later, there was a fresh decline below the $130.00 support and the price is now trading well below the 100 SMA.
There was a break below the 23.6% Fib retracement level of the upward move from the $107.14 low to $136.45 high. However, the $120.00 and $122.00 support levels are currently acting as buy zones.
Moreover, the 50% Fib retracement level of the upward move from the $107.14 low to $136.45 high is acting as a support. If there is a downside break below the $120.00 support, the price could continue to slide.
An immediate support below $120.00 is near the $118.30 level. If there are more losses, the price could decline towards the $114.00 support area.
On the upside, litecoin is facing a lot of hurdles near the $130.00 and $132.00 levels. There are also two connecting bearish trend lines forming with resistance near $132.50 on the 4-hours chart.
If there is a successful close above both trend lines and the 100 simple moving average (4-hours), litecoin price might start a solid increase towards the $144.00 and $150.00 resistance levels. If not, it remains at a risk of more losses below $120.00.
The market data is provided by TradingView.