Litecoin Price Analysis: Can LTC/USD Hold $56 Support?
Litecoin price failed to stay above $60.00 and declined sharply against the US Dollar. LTC/USD is currently at a risk of more losses below the $56.00 support.
Key Talking Points
Litecoin price faced selling pressure recently and declined below $59.00 (Data feed of Kraken) against the US Dollar.
The LTC/USD pair failed near a major bearish trend line with current resistance at $59.50 on the hourly chart.
LTC price is currently correcting higher, but upsides are likely to face sellers near $59.00 and $60.00.
Litecoin Price Forecast
Yesterday, we discussed a possible upside break towards the $65.00 level in litecoin price against the US dollar. However, the LTC/USD pair failed to stay above the $61.00 and $60.00 levels, and declined recently.
Looking at the chart, LTC price clearly failed to settle above the 100 hourly simple moving average and the $61.50 level. There was a sharp bearish reaction from the $61.50 swing high and the price declined below the $60.00 support.
More importantly, the price failed near a major bearish trend line with current resistance at $59.50 on the same chart. The decline was such that the price broke a key support at $59.00.
It traded close to the $56.50 support and formed a low at $56.42. At present, it is correcting higher towards the 23.6% Fib retracement level of the recent drop from the $61.50 swing high to $56.42 low.
It may perhaps continue to move higher in the short term towards the $59.00 level, which was a support earlier and now it could act as a resistance. It also coincides with the 50% Fib retracement level of the recent drop from the $61.50 swing high to $56.42 low.
Therefore, if there is an upside correction, the price is likely to face a strong resistance near the $59.00 level and the same bearish trend line.
On the downside, the $56.50 support holds the key for litecoin price. If there is a break below $56.50 and $56.00, it could open the doors for a push towards $52.00 and $50.00.