Litecoin Price Analysis: LTC/USD Could Decline Further
Litecoin price failed to recover above $56.00 and declined against the US Dollar. LTC/USD is now at a risk of more losses below $52.00 in the near term.
Key Talking Points
·Litecoin price recovery was failed near the $55.50 and $56.00 resistances (Data feed of Kraken) against the US Dollar.
·There is a major contracting triangle forming with resistance near $55.50 on the hourly chart of the LTC/USD pair.
·LTC price is currently struggling below $56.00 and it could decline further below $52.00.
Litecoin Price Forecast
Yesterday, there was a minor upside move in litecoin price above the $54.00 level against the US dollar. The LTC/USD pair traded towards the $55.50 and $56.00 resistance levels where it faced selling interest.
Looking at the chart, LTC price attempted a decent upside recovery above the $55.00 level and the 100 hourly simple moving average. The price also surpassed the 50% Fib retracement level of the recent decline from the $58.40 high to $51.91 low.
There was even a spike above the $56.00 resistance, but buyers failed to hold gains above the 100 hourly SMA. It also failed to settle above the 61.8% Fib retracement level of the recent decline from the $58.40 high to $51.91 low.
The price started declining and is currently trading well below the $55.00 level and the 100 hourly SMA. More importantly, there is a major contracting triangle forming with resistance near $55.50 on the hourly chart of the LTC/USD pair.
If the price breaks the triangle support at $53.50, there could be a downside break below the $52.00 support. The next major support in this case is around the $50.00 level.
On the other hand, if buyers succeed in clearing the $55.50 resistance and the 100 hourly SMA, there may well be more gains above the $56.00 level. In short, litecoin price is approaching the next break either above $56.00 or below $52.00 in the near term. Below $52.00, there is a risk of sharp declines in LTC/USD.