Litecoin price is extending declines and is currently below $180 against the US Dollar. LTC/USD could continue to move down towards the $170 and $165 support levels.
Key Talking Points
Litecoin price made a downside move and settled below the $180 support (Data feed of Kraken) against the US Dollar.
There is a descending channel forming with resistance at $180 on the hourly chart of LTC/USD pair.
The pair could extend the current declines and it may retest the next support at $170 in the near term.
Litecoin Price Forecast
There was a new downside wave initiated from the $193 swing high in litecoin price against the US dollar, as discussed yesterday. The LTC/USD pair broke the $185 and $180 support levels to settle well below the 100 hourly simple moving average.
The pair recently broke the 50% Fib retracement level of the last leg up from the $165 swing low to $193 high. Moreover, there was a break below a connecting bullish trend line at $185-186, as pointed out yesterday.
At the moment, there is a descending channel forming with resistance at $180 on the hourly chart of LTC/USD pair. The pair is likely to extend declines in the near term towards $170.
An intermediate support is around the 76.4% Fib retracement level of the last leg up from the $165 swing low to $193 high at $172. If litecoin buyers need to gain control, they have to push the price above the channel resistance at $180.
More importantly, the price has to move above $182 and the 100 hourly SMA to gain upside momentum. On the flip side, if the pair fails to move higher, there is a chance of a downside move back towards $170.
Below $170, the price could even retest the last swing low of $165. The hourly RSI for LTC/USD is around the 50 level and is showing no sign of an upside move. Overall, there can be more declines toward $165-170 in the near term.