Litecoin Price Analysis: LTC/USD Just Broke Trend Support
Litecoin price failed to move above the $190-200 resistance area against the US Dollar. LTC/USD just broke a key support at $185 to move back in the bearish zone.
Key Talking Points
Litecoin price recently traded higher from the $165 low before facing sellers around $190 (Data feed of Kraken) against the US Dollar.
There was a break below a major ascending channel support at $186 on the hourly chart of LTC/USD pair.
The pair could decline further and it may even test the $170 support level in the near term.
Litecoin Price Forecast
There was a fresh upside wave initiated from the $165 swing low in litecoin price against the US dollar. The LTC/USD pair traded higher and broke the $175 and $180 resistance levels to trade above the 100 hourly simple moving average.
The pair as high as $193.76 before starting a downside correction. It moved down and broke the 23.6% Fib retracement level of the last wave from the $165.3 low to $193.76 high.
More importantly, there was a break below a major ascending channel support at $186 on the hourly chart. It opened the doors for more losses in the short term below $180.
The pair is currently trading near the $180 support and the 100 hourly SMA. Moreover, the 50% Fib retracement level of the last wave from the $165.3 low to $193.76 high is at $179 to act as a support.
However, the current price action is bearish, which means LTC could extend declines below $180. The next major support is at $170 from where the price could start a new upside wave.
In the short term, there can be ranging moves between $170-195 before litecoin price makes the next move. On the upside, a successful close above $200 is needed for buyers to gain momentum,
On the downside, the $165-170 support holds a lot of importance to avoid further declines. To sum up, the recent break was short-term bearish below $180 with support at $170 and $165.