Litecoin price topped near the $37.00 level and declined recently against the US Dollar. LTC/USD remains in a significant downtrend and it could even trade below $26.00.
Key Talking Points
- Litecoin price recovery failed to gain momentum above $36.00 (Data feed of Kraken) against the US Dollar.
- There was a break below a major bullish trend line with support at $32.50 on the 4-hour chart of the LTC/USD pair.
- LTC price is currently in a significant downtrend and it could trade below $26.00-25.00.
Litecoin Price Forecast
This past week, there was a decent support formed near $26.00 in litecoin price against the US dollar. The LTC/USD pair started a solid recovery and traded above the $30.00 and $35.00 resistances.
Looking at the 4-hour chart, LTC price formed a low and later climbed above the $32.00 resistance. There was a break above the 50% Fib retracement level of the last major decline from the $43.01 high to $26.63 low.
However, the upside move was capped by the $36.60-37.00 zone and the 100 simple moving average (4-hour). Moreover, the price failed to break a major bearish trend line with current resistance at $32.50 on the same chart.
Finally, there was a rejection near the 61.8% Fib retracement level of the last major decline from the $43.01 high to $26.63 low. As a result, there was a fresh decline below $32.00 and a major bullish trend line with support at $32.50 on the same chart.
The price is now trading well below the $35.00 level and the 100 simple moving average (4-hour). It seems like the price may continue to move down and it could break the $30.00 and $28.00 levels.
If sellers remain in action, the price could even break the $26.60 swing low and test the $25.00 support level. Overall, litecoin price remains in a significant downtrend as long as it is below $35.00. If LTC sellers push the price below $25.00, there could be a sharp decline towards the $20.00 level.
The market data is provided by TradingView.
