Litecoin price started a sharp downward move from well above $90.00 against the US dollar. LTC declined below the $88.00 and $80.00 support levels to move into a short term bearish zone.
Key Talking Points
- Litecoin price declined sharply below the $88.00 support area (Data feed of Kraken) against the US Dollar.
- There was a break below a major ascending channel with support at $88.50 on the hourly chart.
- LTC price even broke the $80.00 support and traded close to the $75.00 support area.
Litecoin Price Analysis (LTC)
In the past few hours, there was a strong downward move in bitcoin, Ethereum, EOS, litecoin and ripple against the US Dollar. The LTC/USD pair broke the key $88.00 and $85.00 support levels to move into a short term bearish zone.
Looking at the chart, LTC price formed a swing high at $92.49 and recently declined sharply. It broke the $88.00 and $85.00 support levels, plus settled well below the 100 hourly simple moving average.
The decline was initiated after there was a break below a major ascending channel with support at $88.50 on the same chart. Later, the price broke the $80.00 support area and traded as low as $75.60.
It is currently consolidating losses and traded inside a declining channel with resistance at $79.00. The 23.6% Fib retracement level of the last decline from the $92.49 high to $75.60 low is also near the $79.60 to act as a strong resistance.
If there is a break above the $80.00 resistance, the price could bounce back towards the $85.00 resistance. Besides, the price may test the 50% Fib retracement level of the last decline from the $92.49 high to $75.60 low.
On the other hand, if the price fails to recover above $80.00, there could be a fresh decline below the $75.60 and $75.00 support levels.
The main support for litecoin price is near the $72.00 level, where buyers are likely to appear. Once the current correction wave is complete either near $75.00 or $72.00, LTC price could bounce back above $80.00 and $85.00.
The market data is provided by TradingView.
