Litecoin price declined further and tested the $50.00 support against the US Dollar. LTC/USD could correct a few points, but upsides are likely to remain capped.
Key Talking Points
· Litecoin price fell sharply and broke the $55.00 support level (Data feed of Kraken) against the US Dollar.
· Yesterday’s followed important bearish trend line is still intact with resistance around the $59.20 level on the hourly chart of the LTC/USD pair.
· LTC may perhaps correct a few points, but it could face sellers near $55.00 and $58.00.
Litecoin Price Forecast
Yesterday, we discussed that litecoin price could dropfurther towards the $50.00 level against the US dollar. The LTC/USD pair declined heavily, broke the $55.00 support, and traded a few points below the $50.00 level.
Looking at the chart, LTC price dived below the $52.00 level and even broke the $50.00 level. A low was formed at $49.40 and later the price stared consolidating losses above the $50.00 level.
It is testing the 23.6% Fib retracement level of the recent drop from the $60.65 high to $49.40 low. Above the $52.00-53.00 zone, the price could test the $55.00 level. The stated $55.00 level is likely to act as a resistance since it was a support earlier.
Moreover, the 50% Fib retracement level of the recent drop from the $60.65 high to $49.40 low is near the $55.00 level. Above this, yesterday’s followed important bearish trend line is still intact with resistance around the $59.20 level on the hourly chart of the LTC/USD pair.
The trend line resistance near $59.20 coincides with the 100 hourly simple moving average. Therefore, if the price corrects higher from the current levels, it is likely to face sellers near the $55.00 and $59.00 levels.
On the flip side, the $50.00 support area holds a lot of importance. Should litecoin price fail to stay above $50.00, it could continue to move down. The next major support is at $48.00, followed by the $44.00 level.
The market data is provided by TradingView.