Litecoin price dived below the $50.00 support against the US Dollar. LTC/USD later recovered, but it is facing many hurdles near $55.00 and $57.00.
Key Talking Points
· Litecoin price extended its decline and moved below the $50.00 support before recovering (Data feed of Kraken) against the US Dollar.
· There was a break above a connecting bearish trend line with resistance at $51.80 on the hourly chart of the LTC/USD pair.
· LTC price is now facing many resistances near $55.00 and a bearish trend line on the same chart.
Litecoin Price Forecast
Yesterday, we discussed that litecoin price could tumble below the $50.00 support against the US dollar. The LTC/USD pair did break the $50.00 support and traded close to the $47.00 level.
Looking at the chart, LTC price extended losses and traded as low as $47.03. Later, buyers appeared and pushed the price above the $48.00 level. The price started a decent recovery and moved above the $50.00 resistance.
There was a break above the 50% Fib retracement level of the last decline from the $56.50 swing high to $47.03 low. Moreover, there was a break above a connecting bearish trend line with resistance at $51.80 on the hourly chart of the LTC/USD pair.
The price even moved above the $52.00 level, but it seems like the price is struggling to gain traction above the $53.00 level and the 100 hourly simple moving average. Additionally, there is another bearish trend line positioned with resistance at $54.20 on the same chart.
Finally, the 76.4% Fib retracement level of the last decline from the $56.50 swing high to $47.03 low is at $54.29. Therefore, the price is likely to find a strong resistance near the $54.20 and $55.00 levels.
There could be a minor downside reaction back towards the $51.50 and $50.00 levels where buyers are likely to take a stand. If they fail, the price is likely to resume its decline back towards the $47.00 level.
Overall, litecoin price has recovered nicely, but it won’t be easy for buyers to surpass $54.00 and $55.00.
The market data is provided by TradingView.
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