Litecoin price continues to struggle to break the $53.00 resistance against the US Dollar. LTC/USD is now at a risk of a downside break below the $51.00 support level.
This week, we were looking for an upside break above the $53.00 resistance in litecoin price against the US dollar. However, the LTC/USD pair struggled on many occasions to break the $52.50 and $53.00 resistance levels.
Looking at the chart, LTC price recent formed a low near the $51.30 level and later started an upside correction. It moved above the $52.00 and $52.25 levels, but the price struggled to gain momentum above the 100 hourly simple moving average.
Additionally, there was a failed attempt to break the 61.8% Fib retracement level of the last major drop from the $53.25 swing high to $51.30 swing low.
The price was rejected near the $52.50 level and later the price started a fresh decline. It moved down and broke the $52.00 level and the 100 hourly SMA. The decline was such that the price traded close to the last swing low of $51.30.
At the moment, the price is trading well below the $52.50 resistance and the 100 hourly SMA. More importantly, there is a major breakout pattern forming with resistance near $52.20 on the hourly chart of the LTC/USD pair.
If the pair breaks to the upside above the $52.20 level, it could even break the $52.50 resistance. The next resistance is near the $53.00 barrier.
On the other hand, if litecoin price fails to move above the $52.20 and $52.50 resistance levels, there could be a major downside move below the $51.30 low and the $51.00 support area.
Key Talking Points
- Litecoin price failed once again to move above the $52.50 and $53.00 resistances (Data feed of Kraken) against the US Dollar.
- There is a major breakout pattern forming with resistance near $52.20 on the hourly chart of the LTC/USD pair.
- LTC price is at a risk of a downside break below the $51.00 support level in the near term.