- Litecoin price started a major downside correction after trading as high as $107.80 against the US Dollar.
- LTC price is currently struggling below the $100.00 and $95.00 support levels.
- There is a major bearish trend line forming with resistance at $89.20 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair is currently moving lower and it seems like LTC could retest $84.00 before a fresh increase.
Litecoin price started a downside correction below $100.00 against the US Dollar, similar to bitcoin. LTC price could test the $84.00 or $80.00 support before the bulls take back the stage.
Litecoin Price Analysis
This past week, there was a strong upward move in litecoin price above the $95.00 barrier against the US Dollar. The LTC/USD pair cleared the $100.00 resistance and traded close to the $108.00 level. A swing high was formed at $107.20 and recently the price started a strong downside correction. The price broke the $100.00 and $95.00 support levels to enter a short term bearish zone. There was also a close below the $92.50 level and the 55 simple moving average (4-hours).
The price traded below the 61.8% Fib retracement level of the upward move from the $84.07 low to $107.20 high. At the moment, the price is currently struggling below $90.00 and $88.00. Besides, the price is just trading below the 76.4% Fib retracement level of the upward move from the $84.07 low to $107.20 high. If there are more losses, the next major support is near the $84.00 area. If sellers remain in action, the price might even test the $80.00 or $79.80 support.
Besides, the 1.236 Fib extension level of the upward move from the $84.07 low to $107.20 high is near the $80.90 level to act as a support. On the upside, there is a major resistance forming near the $89.00 and $90.00 levels. The 100 hourly SMA is close to the $90.00 level. More importantly, there is a major bearish trend line forming with resistance at $89.20 on the 4-hours chart of the LTC/USD pair.
Looking at the chart, litecoin price is clearly under pressure below the $95.00 and $90.00 levels. In the short term, there could be another downside reaction towards $80.00 or even $80.00. Once the current decline is complete, the price is likely to bounce back above $95.00 or $100.00.
Technical indicators
4 hours MACD – The MACD for LTC/USD is slowly gaining momentum in the bearish zone, with negative signs.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is currently below the 50 level and it is moving lower.
Key Support Levels – $84.00 and $80.00.
Key Resistance Levels – $90.00 and $95.00.
