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.

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.

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