Litecoin price moved into a bearish zone below the $35.00 support. LTC may continue to move down and it may soon test the $28.00 or $26.00 support levels.
Key Talking Points
- Litecoin price fell sharply this past week and broke the $40.00 and $35.00 supports (Data feed of Kraken) against the US Dollar.
- There is a short term bearish trend line formed with resistance at $32.00 on the hourly chart.
- LTC price may correct a few points, but it remains sell near the $32.00 and $34.00 levels.
Litecoin Price Analysis
This past week, there was a sharp downward move from well above $38.00 in litecoin price against the US dollar. The LTC/USD pair broke the $38.00 and $35.00 support levels to move into a bearish zone.
Looking at the chart, LTC price traded in a range above the $31.00 level for some time, but late sellers gained control. The price declined below the $31.00 and $30.00 levels and settled well below the 100 hourly simple moving average.
A low was formed at $29.63 and the price is currently correcting higher. It is testing the 23.6% Fib retracement level of the last decline from the $32.81 high to $29.63 low.
On the upside, there are many hurdles near the $31.20 and $32.00 levels. There is also a short term bearish trend line formed with resistance at $32.00 on the hourly chart. Besides, the 50% Fib retracement level of the last decline from the $32.81 high to $29.63 low is near the $31.22 level.
Therefore, if there is an upside correction, the price is likely to struggle near the $31.20 and $32.00 resistance levels. Above the trend line, the next hurdle is near the $32.50 level and the 100 hourly SMA.
Once the current correction is complete, litecoin price is likely to resume its decline below $30.00. If LTC breaks the $29.50 support level, there could be additional declines towards the $28.00 and $26.00 levels. On the flip side, a successful close above $33.20 may open the doors for a decent recovery.
The market data is provided by TradingView.