Litecoin price started a major decline from the $140.00 resistance and dropped more than 15%; LTC price trimmed most its gains and it is currently under a lot of pressure, similar to bitcoin.
Key Talking Points
- Litecoin price topped near the $140.00 level and declined sharply below $125.00 (Data feed of Kraken) against the US Dollar.
- There is a major bearish trend line forming with resistance at $114.50 on the hourly chart.
- LTC price must stay above the $110.00 support to avoid more losses in the near term.
Litecoin Price Analysis (LTC)
Recently, there was a sharp decline in bitcoin, ripple and Ethereum, resulting in bearish moves in Litecoin below $130.00 against the US Dollar. The LTC/USD pair topped near the $140.00 level and recently declined more than 15%.
Looking at the chart, LTC price traded as high as $138.21 and it broke the main $130.00 and $125.00 support levels. There was also a close below the $125.00 support and the 100 hourly simple moving average.
It opened the doors for more losses and the price dropped below $110.00. A new weekly low was formed near $106.84 and the price is currently correcting higher.
An initial resistance is near the $114.00 level plus the 23.6% Fib retracement level of the last decline from the $138.21 high to $106.84 low. Moreover, there is a major bearish trend line forming with resistance at $114.50 on the hourly chart.
If there is an upside break above the trend line and the $115.00 level, the price could recover towards the $120.00 level. The next key resistance is near $122.50 and the 50% Fib retracement level of the last decline from the $138.21 high to $106.84 low.
Conversely, if the price fails to move above the $115.00 resistance, it could continue to slide. An immediate support is near the $110.00 level, below which there is a risk of more losses below the $106.50 support area.
Overall, litecoin price is trading near a crucial juncture and as long as it is above the $110.00 support, it could start a decent recovery.
The market data is provided by TradingView.