Litecoin price declined further below the $40.00 level against the US Dollar. LTC/USD is currently correcting higher, but it could face sellers near $45.00.
Yesterday, we saw a major decline below the $50.00 support in litecoin price against the US dollar. The LTC/USD pair fell significantly and traded below the $46.00 and $44.00 support levels.
Looking at the chart, LTC price recently extended declines and spiked below the $40.00 handle. A new yearly low was formed at $39.62 and the price is now trading well below the $48.00 pivot level plus the 100 hourly simple moving average.
Recently, the price recovered and moved above the $40.00 and $41.00 levels. There was also a break above the 23.6% Fib retracement level of the last decline from the $50.00 swing high to $39.62 low.
More importantly, there was a break above a short term consolidation pattern with resistance at $42.10 on the hourly chart of the LTC/USD pair. The pair is currently consolidating near the $44.00 resistance with a few positive signs.
However, there are many resistances on the upside near the $45.00 level. Above $45.00, the 61.8% Fib retracement level of the last decline from the $50.00 swing high to $39.62 low is likely to act as a major hurdle near the $46.00 level.
Therefore, if the price corrects higher, it will most likely struggle near the $45.00 or $46.00 resistance level. On the downside, an initial support is at $42.00, below which the price may revisit the $40.00 level.
Overall, litecoin price is slowly recovering, but it could complete the current correction wave near the $45.00 or $46.00 level, and later resume its decline.
Key Talking Points
- Litecoin price extended declines and spiked below the $40.00 handle (Data feed of Kraken) against the US Dollar.
- There was a break above a short term consolidation pattern with resistance at $42.10 on the hourly chart of the LTC/USD pair.
- LTC price could correct further, but it is likely to face resistance near the $44.00 or $45.00 level.