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.
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.