Litecoin price remains in a downtrend below the $120 resistance against the US Dollar. LTC/USD must stay above the $110 support to avoid a downside break.
Key Talking Points
Litecoin price failed to move higher and declined further towards the $110 level (Data feed of Kraken) against the US Dollar.
There is a major connecting bearish trend line forming with resistance at $116 on the hourly chart of the LTC/USD pair.
The pair must stay above the $110 and $112 support levels to avoid a test of the $100 handle.
Litecoin Price Forecast
There were further bearish pressures below the $120 resistance level in litecoin price against the US dollar. The LTC/USD pair failed to move past the $125 resistance level and settled below the $120 level.
The price traded to a new intraday low and tested the $112 support. A low was formed at $112.46 and it seems like the price remains at a risk of more losses. It may correct a few points towards the 23.6% Fib retracement level of the last drop from the $131 high to $112 low.
There is also a major connecting bearish trend line forming with resistance at $116 on the hourly chart of the LTC/USD pair. The trend line resistance may perhaps play a significant role at $115-116 in the near term.
However, the most important hurdle for buyers is near the $120 level and the 100 hourly simple moving average. Moreover, the 50% Fib retracement level of the last drop from the $131 high to $112 low is near the $122 level.
Therefore, it seems like the $120-122 zone is a crucial barrier for an upside move. On the downside, the price must hold the $112 and $110 support levels. A downside break below $110 could put LTC at a risk of a break towards the $100 handle.
The overall price action is bearish as long as LTC/USD is trading below the $120 and $122 resistance levels in the near term.