Litecoin price corrected higher above the $58.00 level against the US Dollar. LTC/USD failed to break the $60.00 resistance and is currently moving lower.
Key Talking Points
· Litecoin price failed to move above the $60.00 resistance and declined once again (Data feed of Kraken) against the US Dollar.
· There is a breakout pattern forming with support near the $54.20 level on the hourly chart of the LTC/USD pair.
· LTC must stay above the $54.00 support area to avoid any further slides in the near term.
Litecoin Price Forecast
There was a short-term rebound initiated from the $50.00 support in litecoin price against the US dollar. The LTC/USD pair traded above the $55.00 and $58.00 resistance levels, but it faced a lot of sellers on the upside.
Looking at the, LTC price faced a strong resistance near the $60.00 level and topped at $59.31. It declined below the $57.00 level and the 23.6% Fib retracement level of the last wave from the $49.46 low to $49.31 high.
Moreover, there was a close below the $48.00 level and the 100 hourly simple moving average. The price is currently trading near the $54.00-55.000 support area and is under selling pressure.
More importantly, there is a breakout pattern forming with support near the $54.20 level on the hourly chart of the LTC/USD pair. The trend line support is near the 50% Fib retracement level of the last wave from the $49.46 low to $49.31 high.
Therefore, the price must stay above the $54.00-54.20 support area to avoid further slides. Should there be a break and close below $54.00, the price may perhaps retest the $50.00 support area.
On the flip side, if the price recovers from the current levels, it could face sellers near the $58.00 and $59.00 levels. However, the most important resistance for buyers is near the $60.00 level.
Overall, litecoin price remains at a risk of more losses if buyers fail to keep the price above the $54.00 support.
The market data is provided by TradingView.