Litecoin Price Analysis: LTC/USD Holding Downtrend Support
Litecoin price is slowly moving down towards $200 against the US Dollar. LTC/USD has a short-term support at $215, which holds the key.
Key Talking Points
Litecoin price is showing many bearish signs below the $240 resistance area (Data feed of Kraken) against the US Dollar.
There is a descending channel forming with resistance at $240 on the hourly chart of LTC/USD pair.
The pair may continue to face bears as long as it is below $240 and $265.
Litecoin Price Forecast
Yesterday, we saw the big picture for litecoin price below the $280 resistance against the US dollar. The LTC/USD pair remained in the negative zone and it slowly moved down towards the $215 level where somehow buyers prevented declines.
There is a clear downtrend formed below the $265 and $240 resistance levels. Looking at the hourly chart of the LTC/USD pair, there is a descending channel forming with resistance at $240. Precisely, there are two bearish trend lines on the upside with resistance at $240 and $255.
The pair traded as low as $216 recently, and is currently correcting higher. However, it is facing sellers near the 23.6% Fib retracement level of the last decline from the $290 high to $216 low.
The main resistance is around the channel trend line at $240, which is close to the 38.2% Fib retracement level of the last decline from the $290 high to $216 low. More importantly, the 100 hourly simple moving average is positioned around $250 to act as a crucial hurdle.
Overall, it seems like there is a key barrier for buyers forming near $240 and $250. Only a close above these could open the doors for a possible push above $265. Above $265, bearish pressures would decrease and litecoin price may accelerate higher.
On the downside, the recent low of $216 is a short-term downtrend support. A break of $216 could open the doors for more declines toward $200. Below $200, there could be heavy bearish pressures on LTC/USD.