Litecoin price traded above the $180 level before facing resistance against the US Dollar. LTC/USD declined and it traded below the $170 support level.
Key Talking Points
- Litecoin price started a downside correction after trading as high as $183.36 (Data feed of Kraken) against the US Dollar.
- There was a break below a major bullish trend line with support at $167 on the hourly chart of the LTC/USD pair.
- The pair is now trading below the $165 support and it remains at a risk of more losses.
Litecoin Price Forecast
This past week, there were decent gains from the $160 swing low in litecoin price against the US dollar. The LTC/USD pair gained upside momentum and traded above the $165 and $170 resistance levels.
Looking at the chart, the price traded above the $180 level and formed a high at $183.36. Later, it started a downside correction and declined below the $175 support. It also broke the 23.6% Fib retracement level of the last wave from the $142.50 swing low to $183.36 high.
More importantly, there was a break below a major bullish trend line with support at $167 on the hourly chart of the LTC/USD pair. The pair declined and broke the $165 support, and settled below the 100 hourly simple moving average.
At the moment, the price is attempting a close below the 50% Fib retracement level of the last wave from the $142.50 swing low to $183.36 high. Once there is a break and close below $160, the price may decline further towards the $155 support.
The current price action is quite bearish and it seems like LTC is at risk of more losses toward $155 or even $154. On the upside, the broken support at $165 and the 100 hourly simple moving average are likely to act as resistances for buyers.
Only a close above the $165 resistance could push litecoin price back in a positive zone. Overall, LTC/USD may decline further towards $155 where buyers are likely to take a stand.
Trade safe traders and do not overtrade!
*The market data is provided by TradingView.
