- Litecoin price started a major decline from well above the $48.00 level against the US Dollar.
- LTC price traded as low as $41.76 and it is currently correcting higher.
- There are two bearish trend lines forming with resistance near $44.50 and $45.00 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair is likely to face a strong selling interest if it recovers towards the $45.00 resistance.
Litecoin price is holding the $42.00 support area and recovering against the US Dollar, similar to bitcoin. LTC price must surpass the $45.00 resistance to start a strong upward move.
Litecoin Price Analysis
This past week, there was a downside extension in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. LTC price broke the $43.20 support zone and settled below the 55 simple moving average (4-hours).
A low was formed near the $41.76 level before the price started an upside correction. There was a break above the $42.50 and $43.20 levels. The price also climbed above the 23.6% Fib retracement level of the downward move from the $47.14 high to $41.76 low.
However, the price seems to be facing a strong resistance near the $44.50 level and the 55 simple moving average (4-hours). Besides, there are two bearish trend lines forming with resistance near $44.50 and $45.00 on the 4-hours chart of the LTC/USD pair.
The first trend line is close to the 50% Fib retracement level of the downward move from the $47.14 high to $41.76 low. Therefore, litecoin price must surpass the $44.50 and $45.00 resistance levels to continue higher.
The next major resistance could be near the $48.00 level, above which the bulls are likely to aim a test of the main $50.00 resistance zone. Conversely, the price might struggle to clear the $45.00 resistance and start another decline.
An initial support is near the $42.50 level. A successful daily close below the $42.00 region may perhaps accelerate the decline and LTC could move down towards the $40.00 and $38.50 support levels.
Looking at the chart, litecoin price is clearly facing a major hurdle near the $44.50 and $45.00 resistance levels. Therefore, a clear break above the $45.00 level is needed for more gains. If not, there could be a bearish reaction towards the $40.00 support.
Technical indicators
4 hours MACD – The MACD for LTC/USD is struggling to stay in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is currently just below the 50 level.
Key Support Levels – $42.50 and $42.00.
Key Resistance Levels – $44.50 and $45.00.
