Litecoin price started a downside move and traded below $280 against the US Dollar. LTC/USD is short-term bearish, but remains supported above $250.
Key Talking Points
Litecoin price is slowly moving lower and has already broke the $300 and $280 supports (data feed of Kraken) against the US Dollar.
Yesterday’s discussed short-term contracting triangle with support at $285 was broken on the hourly chart of LTC/USD.
The pair is currently holding the $250 support and the 100 hourly simple moving average.
Litecoin Price Forecast
Yesterday, we saw the start of a downside correction from $350 in litecoin price against the US Dollar. The LTC/USD pair was under a minor bearish pressure and was seen consolidating above the $280 support area.
However, the pair failed to hold the consolidation pattern and moved below the $280 support area. More importantly, yesterday’s discussed short-term contracting triangle with support at $285 was broken on the hourly chart.
Furthermore, there was a break below the 50% fib retracement level of the last leg up from the $200 low to $350 high as well. These are short-term bearish signals, suggesting an intermediate top at $350.
At the moment, the price is holding an important support above $250-260. The stated support zone is around the 100 hourly simple moving average and the 61.8% fib retracement level of the last leg up from the $200 low to $350 high.
Therefore, the $260 and $250 support levels are important for further declines in litecoin price. Should the price fail to stay above the $250 support and the 100 hourly SMA, there could be further losses toward $220.
On the upside, the broken support at $280-285 will now act as a resistance. Moreover, the triangle upper trend line might continue to act as a barrier for a break above $300.
To sum up, the current price action is short-term bearish below $300. Having said that, if the pair continues to hold the $250-260 support, it could bounce back in the near term.