Litecoin price declined further and even failed to hold the $170 support against the US Dollar. LTC/USD is currently correcting higher, but it faces many hurdles near $165-170.
Key Talking Points
- Litecoin price fell sharply and traded below the $170 and $165 support levels (Data feed of Kraken) against the US Dollar.
- There is a bearish trend line forming with resistance at $165-170 on the hourly chart of LTC/USD pair.
- The pair is currently in a bearish trend and it is likely to struggle to move above $165-170.
Litecoin Price Forecast
Yesterday, we discussed that litecoin price could retest the $170 support against the US dollar. The LTC/USD pair did move down and tested the $170 support. The downside move was strong, which resulted in further declines below the $170 and $165 supports.
The pair tested the next major support at $155 and is currently trading well below the 100 hourly simple moving average. It is currently trading near the 23.6% Fib retracement level of the last decline from the $193.54 high to $155.17 low.
However, on the upside there are many resistances around the $170 level. There is also a bearish trend line forming with resistance at $165-170 on the hourly chart of LTC/USD pair.
The trend line resistance coincides with the 38.2% Fib retracement level of the last decline from the $193.54 high to $155.17 low. The mentioned $165-170 level was a support earlier, and therefore, it could now act as a strong resistance.
In the short term, it seems like litecoin price has moved into the bearish zone below $200. As long as there is no recovery above $170 and $180, it remains at a risk of more declines.
On the downside, the recent low of $155 is a decent support. Should sellers succeed in pushing the price below $155, there can be an extension toward the $130 level. Below $130, there is a risk of LTC/USD retesting the $100 level in the near term.
Trade safe traders and do not overtrade!