Litecoin price declined further yesterday towards $200 against the US Dollar. LTC/USD is currently correcting higher, but it is facing a major resistance near $225.
Key Talking Points
Litecoin price failed to hold the $220 support yesterday and declined towards $200 (Data feed of Kraken) against the US Dollar.
There is a short-term bearish trend line forming with resistance at $222 on the hourly chart of the LTC/USD pair.
The pair has to break the $222 and $225 resistance levels to gain upside momentum.
Litecoin Price Forecast
Yesterday, we saw a downside reaction in litecoin price from the $250 resistance against the US dollar. The LTC/USD pair was holding the $220 support level, but later the pair declined further and moved towards the $200 level.
It traded close to the $200 level and formed a low near $203. It seems like the pair has moved back in a bearish zone short term below $225 and the 100 hourly simple moving average. I tis currently correcting higher and moved above the 23.6% Fib retracement level of the last decline from the $252 high to $203 low.
However, there are many resistances on the upside near $225. There is also a short-term bearish trend line forming with resistance at $222 on the hourly chart of the LTC/USD pair.
Moreover, the 38.2% Fib retracement level of the last decline from the $252 high to $203 low is at $225 to act as a resistance. More importantly, the $225 level is near the 100 hourly SMA. Therefore, the price has to move above the channel resistance at $222 and then break the $225 resistance to gain upside momentum.
If the pair fails to move above the $225 level, it could decline once again. The most important support on the downside is now at $205 and $200. LTC must stay above the $200 level to avoid further declines. Below $200, the next key support is at $185, which is also a pivot level.