Litecoin price started a downside correction from the $56.35 high against the US Dollar. LTC/USD is currently trading near important support levels near $52.60.
Yesterday, we discussed saw a nice upward move above the $55.00 resistance level in litecoin price against the US dollar. The LTC/USD pair traded as high as $56.35 and later started a downside correction.
Looking at the chart, LTC price corrected lower and broke the $55.00 and $54.00 support levels. During the decline, there was a break below the $53.80 support and the 100 hourly simple moving average.
Additionally, the price declined below the 76.4% Fib retracement level of the last wave from the $52.70 swing low to $56.35 high. More importantly, yesterday’s highlighted two bullish trend lines with support at $55.10 and $53.60 were breached on the hourly chart of the LTC/USD pair.
The pair traded close to the key $52.60 support and the last swing low. There could be a bounce back, but the price may face sellers near the $53.80 level and the 100 hourly SMA.
It seems like there could be another downside push towards the 1.236 Fib extension level of the last wave from the $52.70 swing low to $56.35 high. Once the current correction wave is complete near the $52.60 or $51.80 support level, the price is likely to bounce back.
The current market sentiment is slightly bearish, but litecoin price remains well supported near the $52.60 and $51.80 levels. On the upside, LTC/USD must break the $54.00 level and settle above the 100 hourly SMA to start a fresh upward move toward the $58.00 and $60.00 levels.
Key Talking Points
- Litecoin price formed a short-term top near $56.35 and corrected lower (Data feed of Kraken) against the US Dollar.
- Yesterday’s highlighted two bullish trend lines with support at $55.10 and $53.60 were breached on the hourly chart of the LTC/USD pair.
- LTC price is currently trading near a few key support levels near the $52.60 area.