Litecoin price declined heavily and traded close to $22.00. LTC/USD is currently recovering, but upsides are likely to be capped near $26.00, $28.00 or $30.00.
Key Talking Points
· Litecoin price declined sharply below the $35.00 and $30.00 support levels (Data feed of Kraken) against the US Dollar.
· There is a crucial bearish trend line formed with resistance at $26.00 on the hourly chart of the LTC/USD pair.
· LTC price is likely to struggle near the $26.00, $28.00 and $30.00 resistance levels.
Litecoin Price Forecast
In the last analysis, we discussed that litecoin price couldbe dear near $20.00 against the US dollar. The LTC/USD pair remained in a bearish zone and traded below the $28.00 and $26.00 support levels.
Looking at the chart, LTC price declined close to the $22.00 level and settled below the 100 hourly simple moving average. A new multi month low was formed at $22.26 and later the price started an upside correction.
It moved above the $24.00 level and the 23.6% Fib retracement level of the last drop from the $30.10 high to $22.26 low. However, the upward move was capped by the $26.00 and $26.50 resistance levels plus the 100 hourly SMA.
More importantly, there is a crucial bearish trend line formed with resistance at $26.00 on the hourly chart of the LTC/USD pair. The pair also failed near the 50% Fib retracement level of the last drop from the $30.10 high to $22.26 low.
Therefore, the price is likely to face a strong resistance near $26.00 and the 100 hourly SMA. Above the trend line and $26.00, the price is likely to test the next major resistance near $28.00.
To sum up, litecoin price remains in a major downtrend as long as it is below $30.00. If LTC attempts an upside correction, it could face sellers near the $26.00, $28.00 and $30.00 resistance levels. On the downside, the recent low at $22.20 is a decent support, followed by the $20.00 handle.
The market data is provided by TradingView.
