Litecoin Price Analysis

Litecoin Price Analysis: Sell Rallies In LTC/USD Near $40

Litecoin price declined further and tested the $35.00 support area against the US Dollar. LTC/USD could correct higher, but it is likely to find sellers near $40.00.

Key Talking Points

  • Litecoin price extended the recent decline and traded close to $35.00 before recovering (Data feed of Kraken) against the US Dollar.
  • There was a break above a short term bearish trend line with resistance at $36.00 on the hourly chart of the LTC/USD pair.
  • LTC price could correct higher in the short term towards $39.00 and $40.00.

Litecoin Price Forecast

Yesterday, we discussed that litecoin price could target $35.00 against the US dollar. The LTC/USD pair did move down below the $40.00 support and accelerated declines towards the $35.00 level.

Litecoin Price Analysis LTC Chart

Looking at the chart, LTC price recently corrected towards the $43.00 resistance level where sellers emerged. The price topped near the $43.00 level and started a fresh decline. Sellers took control and pushed the price below the $40.00 level and the 100 hourly simple moving average.

The decline was such that the price traded close to the $35.00 target and formed a low at $35.10. Later, there was a minor upside correction and the price recovered above the $36.00 level.

There was also a break above a short term bearish trend line with resistance at $36.00 on the hourly chart of the LTC/USD pair. Buyers pushed the price above the 23.6% Fib retracement level of the recent decline from the $43.04 high to $35.10 low.

It seems like the price could continue to correct higher towards the $39.00 and $40.00 resistance levels. The main hurdle is near the $40.00 level, which was a support earlier and now it could act as a resistance.

The stated $40.00 zone also coincides with the 100 hourly SMA and the 61.8% Fib retracement level of the recent decline from the $43.04 high to $35.10 low.

Therefore, if there is an upside correction in Litecoin price, it could face sellers near $39.00 or $40.00. On the downside, the key support is at $35.00 for LTC buyers followed by $32.00.

The market data is provided by TradingView.

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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