Litecoin price extended declines and traded close to the $50.00 level against the US Dollar. LTC/USD remains at a risk of more declines if sellers push the price below $50.00.
Key Talking Points
- Litecoin price declined further towards the important $50.00 support (Data feed of Kraken) against the US Dollar.
- There was a break below yesterday’s followed key contracting triangle with support at $54.00 on the hourly chart of the LTC/USD pair.
- LTC price is currently correcting higher, but it could face a strong resistance near $53.00 and $54.00.
Litecoin Price Forecast
Yesterday, we discussed that there could be more declines below $55.00 in litecoin price against the US dollar. The LTC/USD pair started a downside move and broke the $54.00 and $52.00 support levels.
Looking at the chart, LTC price extended declines and there was even a spike below the important $50.00 support level. A new monthly low was formed at $49.85 and the price is now trading well below the 100 hourly simple moving average.
More importantly, there was a break below yesterday’s followed key contracting triangle with support at $54.00 on the hourly chart of the LTC/USD pair. The chart indicates that the price is following a monster descending channel with support near the $49.60 level.
At the outset, the price is consolidating near $50.00 with an immediate resistance at $51.40 and the 23.6% Fib retracement level of the last slide from the $56.54 high to $49.85 low.
Above $51.40, there is a bearish trend line in place with resistance at $52.50 followed by the 50% Fib retracement level of the last slide from the $56.54 high to $49.85 low at $53.20.
Therefore, if the price corrects higher, it is likely to face many hurdles near the $52.00 and $54.00 levels. To recover positively, buyers need to push the price above $55.00.
On the flip side, if litecoin price continues to move down and settles below $50.00, there could be nasty declines towards the $45.00 and $42.00 levels in the near term.
The market data is provided by TradingView.