Litecoin Price Analysis

Litecoin Price Analysis: LTC/USD Bearish Continuation Likely

Litecoin price extended slides below the $51.00 level against the US Dollar. LTC/USD traded below $50.00 and it is currently correcting higher towards resistances.

Key Talking Points

  • Litecoin price failed to correct substantially and declined below $51.00 (Data feed of Kraken) against the US Dollar.
  • There is a short-term bearish flag pattern forming with resistance at $52.00 on the hourly chart of the LTC/USD pair.
  • LTC price is currently correcting higher, but upsides are likely to be capped near $52.00 and $53.75.

Litecoin Price Forecast

Yesterday, we saw a major downside below $55.00 in litecoin price against the US dollar. The LTC/USD pair later corrected higher, but upsides were limited and the price resumed its decline below the $52.00 level.

Litecoin Price Analysis LTC Chart

Looking at the chart, LTC price declined further and broke the $51.00 and $50.00 levels. The price traded to a new weekly low at $49.81 and it is still trading well below the 100 hourly simple moving average.

At the moment, the price is correcting higher above the $50.00 level. An initial resistance is near the 23.6% Fib retracement level of the last slide from the $57.67 high to $49.81 low. More importantly, there is a strong resistance formed near $52.00.

There is also a short-term bearish flag pattern forming with resistance at $52.00 on the hourly chart of the LTC/USD pair. Should the price break the channel resistance, it could correct higher towards the $53.75 and $54.00 resistance levels.

Moreover, the 50% Fib retracement level of the last slide from the $57.67 high to $49.81 low is near the $53.75 level to act as a solid hurdle for buyers.

On the flip side, if the price breaks down again below the channel support and $50.00, there could be sharp downsides. The next major support below $50.00 is observed near the $47.00 level.

Overall, the current structure is pointing more declines in litecoin price as long as the price is below $54.00. A convincing break and close above $54.00 and $55.00 is needed for a trend change.

The market data is provided by TradingView.

Aayush Jindal
About author

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets Reach Aayush via email: [email protected]
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