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.
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.