Litecoin price collapsed and traded below the $44.00 support against the US Dollar. LTC/USD traded close to $40.00 and it remains in a major downtrend.
Key Talking Points
- Litecoin price is under a lot of selling pressure below the $44.00 support (Data feed of Kraken) against the US Dollar.
- There is a short term descending triangle forming with resistance at $42.50 on the hourly chart of the LTC/USD pair.
- LTC price remains at a risk of more losses towards the $40.00 and $30.00 levels.
Litecoin Price Forecast
Yesterday, we discussed that litecoin price turned bearish below the $50.00 support against the US dollar. The LTC/USD pair gained bearish momentum and declined below the $48.00 and $45.00 support levels.
Looking at the chart, LTC price was under a lot of pressure as it declined to a new yearly low below $42.00. The price traded close to the $40.00 handle and it is currently well below the 100 hourly simple moving average.
A low was formed at $40.27 and later the price corrected higher. It moved above the $42.00 level and the 23.6% Fib retracement level of the recent slide from the $49.98 high to $40.27 low.
However, gains were protected by the $44.00 resistance, which was a resistance earlier. More importantly, there is a short term descending triangle forming with resistance at $42.50 on the hourly chart of the LTC/USD pair.
Therefore, there is a risk of more losses below the $42.00 and $40.00 support levels in the near term. On the other hand, if there is an upside correction above the $42.50 resistance, the price may test the $45.00 resistance.
The 50% Fib retracement level of the recent slide from the $49.98 high to $40.27 low is also around $45.00 to act as a solid barrier. Overall, litecoin price decline looks real below $50.00 and $45.00. Any upside correction from the current levels could face sellers near $44.00, $45.00 or $48.00. On the downside, the main support is at $40.00, below which the price could drop to $38.00.
The market data is provided by TradingView.
