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Litecoin Price Analysis: LTC/USD Upsides Remain Capped

Litecoin Price Analysis: LTC/USD Upsides Remain Capped

Litecoin price faced bearish pressure and moved below $51.00 against the US Dollar. LTC/USD is correcting higher, but facing resistances near $50.60 and $51.40.

Key Talking Points

  • Litecoin price declined this week and moved below the $50.00 handle against the US Dollar.
  • There was a break below a major bullish trend line with support at $52.50 on the hourly chart of LTC/USD.
  • The pair is currently correcting higher, but upsides remain capped by the $51.50 resistance.

Litecoin Price Forecast

The recent spike in Bitcoin price increased a lot of pressure on Litecoin price against the US Dollar. The price started a downside move from $54.50 and broke a couple of important support levels like $53.00 and $52.00.

The downside move was such that there was a clear break below a major bullish trend line with support at $52.50 on the hourly chart of LTC/USD (data feed of Kraken exchange). The pair also traded below the 100 hourly simple moving average and the $50.00 handle.

Litecoin_Price_Chart

Cryptocurrency charts and prices provided by TradingView

The pair traded as low as $48.14 before forming a base for a correction. Buyers managed to push the price above the 23.6% Fibonacci retracement level of the last decline from the $54.50 high to $48.14 low.

However, there are many hurdles on the upside at $50.60 and $51.40, waiting to prevent further gains. There is also a steep bearish trend line with current resistance at $50.10.

As long as the price is trading below the $51.50 resistance, there can be another downside push. Should there be a break above $51.50, the price could retest the last swing high at $54.50.

On the downside, the $48.40 and $48.00 levels remain decent supports. Buyers might continue to prevent declines below $48.00.

However, if the current ride in Bitcoin does not stop soon, there can be a break of $48.00 in LTC/USD for a downside reaction towards the next important support at $45.00.

The hourly RSI for LTC/USD is currently at 35 and the MACD is showing signs of buyers losing momentum.

Trade safe traders and do not overtrade!

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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: aayushjindal@ethereumworldnews.com
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