Litecoin Price Analysis

Litecoin Price Analysis: LTC/USD’s Bounce Could Fade Soon

Litecoin Price Analysis LTC Chart

Litecoin price dived below the $50.00 support against the US Dollar. LTC/USD later recovered, but it is facing many hurdles near $55.00 and $57.00.

Key Talking Points

·         Litecoin price extended its decline and moved below the $50.00 support before recovering (Data feed of Kraken) against the US Dollar.

·         There was a break above a connecting bearish trend line with resistance at $51.80 on the hourly chart of the LTC/USD pair.

·         LTC price is now facing many resistances near $55.00 and a bearish trend line on the same chart.

Litecoin Price Forecast

Yesterday, we discussed that litecoin price could tumble below the $50.00 support against the US dollar. The LTC/USD pair did break the $50.00 support and traded close to the $47.00 level.

Litecoin Price Analysis LTC Chart

Looking at the chart, LTC price extended losses and traded as low as $47.03. Later, buyers appeared and pushed the price above the $48.00 level. The price started a decent recovery and moved above the $50.00 resistance.

There was a break above the 50% Fib retracement level of the last decline from the $56.50 swing high to $47.03 low. Moreover, there was a break above a connecting bearish trend line with resistance at $51.80 on the hourly chart of the LTC/USD pair.

The price even moved above the $52.00 level, but it seems like the price is struggling to gain traction above the $53.00 level and the 100 hourly simple moving average. Additionally, there is another bearish trend line positioned with resistance at $54.20 on the same chart.

Finally, the 76.4% Fib retracement level of the last decline from the $56.50 swing high to $47.03 low is at $54.29. Therefore, the price is likely to find a strong resistance near the $54.20 and $55.00 levels.

There could be a minor downside reaction back towards the $51.50 and $50.00 levels where buyers are likely to take a stand. If they fail, the price is likely to resume its decline back towards the $47.00 level.

Overall, litecoin price has recovered nicely, but it won’t be easy for buyers to surpass $54.00 and $55.00.

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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