Litecoin Price Analysis: LTC/USD Breaks Key Support
Litecoin price failed to move above the $142 resistance and declined against the US Dollar. LTC/USD is now trading below the 100 hourly simple moving average and $140.
Key Talking Points
- Litecoin price was rejected from the $142 resistance area (Data feed of Kraken) against the US Dollar.
- There was a break below a key bullish trend line with support at $136 on the hourly chart of the LTC/USD pair.
- The pair is currently trading below $140 and the 100 hourly SMA, with risk of more losses in the near term.
Litecoin Price Forecast
After a brief failure to move above the $142 resistance, litecoin price started a downside move against the US dollar. The LTC/USD pair declined and broke the $140 and $135 support levels.
Looking at the chart, the price failed on more than two occasions to break the $142 resistance. Therefore, the current downside move extend if the price fails to stay above $130.
During the recent downside move, the price broke the 50% Fib retracement level of the last wave from the $128 low to $141 high. More importantly, there was a break below a key bullish trend line with support at $136 on the hourly chart of the LTC/USD pair.
The pair declined further and even settled below the $135 level and the 100 hourly simple moving average. It almost tested the 76.4% Fib retracement level of the last wave from the $128 low to $141 high.
At the moment, the price is correcting higher, but the broken support near the 100 hourly SMA and $136 is acting as a hurdle for buyers. Therefore, as long as the price is below the 100 hourly SMA, it remains at a risk of more loses below $132.
The next important support sits near $130, followed by the last swing low of $128. On the flip side, a push above the $136 level may open the doors for more recoveries and litecoin price may even retest the $142 resistance.
The market data is provided by TradingView.