Litecoin price extended losses below the $75.40 support zone against the US dollar. LTC traded below the $70.00 level and it is currently correcting higher towards the $74.50 and $75.40 resistances.
Key Talking Points
- Litecoin price moved into a bearish zone below the $75.40 support area (Data feed of Kraken) against the US Dollar.
- There is a major bearish trend line formed with resistance at $75.00 on the hourly chart.
- LTC price could correct higher, but it is likely to face sellers near $74.50 or $75.00.
Litecoin Price Analysis (LTC)
In the past two sessions, there was a strong decline in bitcoin, Ethereum, EOS, litecoin and ripple against the US Dollar. The LTC/USD pair broke the key $75.40 support area to move into a bearish zone.
Looking at the chart, LTC price even broke the $74.50 and $72.10 support levels. There was a spike below the $70.00 support and the price settled well below the 100 hourly simple moving average. A new weekly low was formed at $68.77 and the price is currently correcting higher.
It broke the 23.6% Fib retracement level of the last decline from the $79.64 high to $68.77 low. However, on the upside, there are many hurdles for the bulls near the $74.50 and $75.00 levels.
There is also a major bearish trend line formed with resistance at $75.00 on the hourly chart. The trend line coincides with the 100 hourly simple moving average and the 50% Fib retracement level of the last decline from the $79.64 high to $68.77 low.
Therefore, if there is an upward move, litecoin is likely to face a strong selling interest near the $74.50, $75.00 and $75.40 levels. Only a close above the $76.00 level and the 100 hourly SMA could start a decent upward move.
On the other hand, if litecoin price fails to move past the $75.00 resistance area, there could be additional losses. An initial support is at $70.00, below which there is a risk of a sharp drop below the $68.50 level in the near term.
The market data is provided by TradingView.