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.
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.