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.
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.