Litecoin Price Analysis

Litecoin Price Analysis: LTC/USD Turned Sell on Rallies

Litecoin price declined sharply below the $56.00 support against the US Dollar. LTC/USD is currently correcting, but it is likely to face sellers near $54.00 or $56.00.

Key Talking Points

  • Litecoin price failed to recover and declined heavily below the $56.50 support (Data feed of Kraken) against the US Dollar.
  • There is a major bearish trend line formed with resistance at $56.50 on the hourly chart of the LTC/USD pair.
  • LTC price may correct higher in the short term but upsides are likely to be capped near $54.00.

Litecoin Price Forecast

There were continuous failures to break the $59.00-60.00 resistance zone in litecoin price against the US dollar. As a result, the LTC/USD pair reacted to the downside and broke an important support at $56.50.

Litecoin Price Analysis LTC Chart

Looking at the chart, LTC price declined heavily and broke the $56.00 support as well. The decline was such that the price traded close to the $51.00 level and settled below the 100 hourly simple moving average.

A low was formed at $51.16 and the price is currently correcting higher. An initial resistance is near the 23.6% Fib retracement level of the recent decline from the $57.76 high to $61.16 low. Above $52.75, there are many hurdles for buyers.

The main resistance is near the $54.50 level since it is close to the 50% Fib retracement level of the recent decline from the $57.76 high to $61.16 low. Above this, the previous support near the $56.00 level could protect gains.

More importantly, there is a major bearish trend line formed with resistance at $56.50 on the hourly chart of the LTC/USD pair. Therefore, if the price corrects higher, it may well face a lot of sellers near the $54.50 and $56.00 levels.

On the downside, the $51.00 level is an initial support for litecoin price. A break below $51.00 will most likely increase chances of more losses below the $50.00 level. On other hand, a close above $56.50 could push the price back in a positive zone.

The market data is provided by TradingView.

Aayush Jindal
About author

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets Reach Aayush via email: [email protected]
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