Litecoin price corrected a few points from the $47.40 low against the US Dollar. LTC/USD could correct further higher, but upsides are likely to be capped near $50.00.
Key Talking Points
Litecoin price is slowly recovering from the $47.40 swing low (Data feed of Kraken) against the US Dollar.
There is a short-term ascending channel in place with resistance at $49.40 on the hourly chart of the LTC/USD pair.
LTC price may perhaps correct higher, but it is likely to face sellers near $50.00 and $50.50.
Litecoin Price Forecast
Yesterday, we saw a major downside move below the $50.00 support in litecoin price against the US dollar. The LTC/USD pair traded as low as $47.40 and later started a short-term upside correction.
Looking at the chart, LTC price slowly recovered and moved above the $48.00 and $49.00 levels. Moreover, there was a break above the 23.6% Fib retracement level of the recent drop from the $51.76 high to $47.40 swing low.
However, gains were limited and the price even failed to test the $50.00 resistance area. At the outset, there is a short-term ascending channel in place with resistance at $49.40 on the hourly chart of the LTC/USD pair.
If the pair moves above the channel resistance, it could test the 50% Fib retracement level of the recent drop from the $51.76 high to $47.40 swing low. The most important resistance on the upside is near the $50.00 level, which was a support earlier.
Above $50.00, the next resistance is near the $50.50 level and the 100 hourly simple moving average. As long as the price is trading below the $50.00 and $50.50 levels, it remains in a downtrend
On the downside, the channel support is near the $48.50 level. Below the channel support, litecoin price is likely to revisit the recent low near $47.40. More importantly, if sellers push the price below the $47.40 swing low, there could be more losses. The next key support is near the $45.00 level.