Litecoin price extended declines below the $50.00 support against the US Dollar. LTC/USD is under a lot of pressure below the $50.00 and $51.00 levels.
Key Talking Points
Litecoin price extended declines and traded below the $50.00 support (Data feed of Kraken) against the US Dollar.
This week’s followed important bearish trend line is still in place with resistance at $49.80 on the hourly chart of the LTC/USD pair.
LTC price may correct higher, but upsides are likely to be capped near the $50.00 level.
Litecoin Price Forecast
Yesterday, we discussed that litecoin price could continue to move down below the $50.00 support against the US dollar. The LTC/USD pair extended declines and it even broke the $49.50 swing low.
Looking at the chart, LTC price traded towards the $48.00 support area and formed a new monthly low at $48.22. Later, there was an upside correction and the price recovered above the $48.80 level.
It also moved above the 23.6% Fib retracement level of the recent decline from the $50.96 high to $48.22 low. However, the price is still trading well below the $50.00 resistance and the 100 hourly simple moving average.
More importantly, this week’s followed important bearish trend line is still in place with resistance at $49.80 on the hourly chart of the LTC/USD pair. The trend line is near the 50% Fib retracement level of the recent decline from the $50.96 high to $48.22 low.
Above the trend line, the $50.00 handle is likely to act as a solid resistance for buyers in the near term. Therefore, if the price corrects higher, the $49.80 and $50.00 levels are likely to protect gains.
Overall, litecoin price is clearly under a lot of pressure below the $51.00 and $50.00 levels. As long as there is no close above $51.00 and the 100 hourly simple moving average, there could be more declines. An immediate support is the recent low at $48.22, below which the price may test the $47.50 support.