Litecoin Price Analysis: Sell Rallies In LTC/USD Short Term
Litecoin price turned bearish below the $52.00 support against the US Dollar. LTC/USD is currently near the $50.00 support with a bearish angle.
Key Talking Points
Litecoin price failed to recover and declined towards the $50.00 support level (Data feed of Kraken) against the US Dollar.
Yesterday’s highlighted key bearish trend line is intact with resistance at $50.40 on the hourly chart of the LTC/USD pair.
LTC price is currently in a bearish zone and any recovery could face sellers near $51.00.
Litecoin Price Forecast
Yesterday, we saw a bearish formation in litecoin price below the $51.70 support area against the US dollar. The LTC/USD pair extended losses and revisited the $50.00 support area.
Looking at the chart, LTC price started a short term correction from the $49.50 swing low. It recovered above the $50.00 and $50.50 level. However, the upside move was capped by the $51.20 resistance, which was a support earlier.
Moreover, there was no close above the 61.8% Fib retracement level of the downside move from the $52.40 high to $49.50 low. The price formed a high at $51.28 and later started a fresh decline. It broke the $50.50 support and it is currently well below the 100 hourly simple moving average.
The recent low was $49.61 and it seems like the price may correct higher in the short term. An initial resistance is near $50.20 and the 23.6% Fib retracement level of the recent slide form the $51.28 high to $49.61 low.
More importantly, yesterday’s highlighted key bearish trend line is intact with resistance at $50.40 on the hourly chart of the LTC/USD pair. Above, the trend line, the price could revisit the $51.20 resistance, which is a major hurdle for buyers.
As long as litecoin price is trading below the $51.20 level, it remains at a risk of more declines. Therefore, selling rallies close to $51.20 and $51.70 can be considered. The main supports on the downside are positioned near the $49.50 and $48.10 levels.