Litecoin price failed to hold the $280 support against the US Dollar. LTC/USD could even break $250 and decline further in the near term.
Key Talking Points
Litecoin price started a major correction and it recently moved below the $280 support (Data feed of Kraken) against the US Dollar.
There are two bearish trend lines forming with resistance at $280 and $300 on the hourly chart of LTC/USD.
The pair might continue to move down and it could even break $250 and $220 going forward.
Litecoin Price Forecast
There was a major downside move initiated from the $365 swing high in litecoin price against the US Dollar. The LTC/USD pair traded below $300 and later extended declines below the $280 and $270 support levels.
The pair is now well below the 100 hourly simple moving average and it traded as low as $250.16. It recently corrected higher, but failed to break the 23.6% Fib retracement level of the last drop from the $368 high to $250 low.
On the upside, there are two bearish trend lines forming with resistance at $280 and $300 on the hourly chart of LTC/USD. The second trend line is more important around $300 since it is close to the 50% Fib retracement level of the last drop from the $368 high to $250 low.
Moreover, the 100 hourly SMA is also aligned near the $320 level. Therefore, it is safe to say that there are many hurdles on the upside near $300-320.
Should the pair correct higher from the current levels, it will most likely face offers around $300. On the downside, the recent low of $250 is a short-term support. A break below the $250 support might ignite further declines toward $220 and $200 in the near term.
Overall, the price action is slightly bearish and there are chances of more declines toward $220. On the upside, the $300 and $320 levels are crucial barriers along with the 100 hourly SMA for litecoin buyers.