Litecoin price declined recently and tested the $30.00 support against the US Dollar. LTC is now approaching the next significant break, most likely above $33.00.
Key Talking Points
- Litecoin price declined and tested the key $30.00 support recently (Data feed of Kraken) against the US Dollar.
- There is a crucial bearish trend line in place with resistance at $32.00 on the 4-hour chart.
- LTC price is likely preparing the next significant break either above $33.00 or towards $25.00.
Litecoin Price Analysis and Forecast
After a solid upward move above the $40.00 level, litecoin price started a fresh decline against the US dollar. The LTC/USD pair traded below the $38.00 and $35.00 support levels to move into a bearish zone.
Looking at the 4-hour chart, LTC price topped near the $41.14 level and later tumbled below the $35.00 support and the 100 simple moving average (4-hour). There was even a break and close below the $33.00 support area.
The price tested the $30.00 support and a low was formed at $29.60. Later, the price corrected higher and traded above the $31.00 and $32.00 levels. However, the upward move was capped by the 23.6% Fib retracement level of the last drop from the $41.14 high to $29.60 low.
More importantly, there is a crucial bearish trend line in place with resistance at $32.00 on the 4-hour chart of LTC/USD. The current price action suggests that the next move is approaching, which could be either above $32.00-33.00 or below $30.00.
If there is an upside break above $32.00 and $33.00, the price could recover towards $35.00. It represents the 50% Fib retracement level of the last drop from the $41.14 high to $29.60 low. The next major resistances are $38.40 and $40.00.
On the other hand, it litecoin price fails to gain traction, it could break the $30.00 and $29.60 supports. In the mentioned bearish scenario, LTC could decline towards the next support at $27.50. The main support could be $25.00 where buyers are likely to emerge.
The market data is provided by TradingView.
