Litecoin Price Analysis

Litecoin Price Analysis: LTC/USD Drops To New 2018 Low Near $40

Litecoin Price Analysis LTC Chart

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.

Litecoin Price Analysis LTC Chart

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.

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: aayushjindal@ethereumworldnews.com
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