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Litecoin (LTC) Price Analysis: Can Bulls Defend This Key Support?

  • Litecoin price is down more than 10% from the $45.00 resistance against the US Dollar.
  • LTC price broke the key $40.00 support level to move into a bearish zone.
  • There is a major bearish trend line forming with resistance near $41.00 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
  • The pair must stay above the $38.00 or $37.00 support to start a fresh upward move.

Litecoin price is showing a few bearish signs below $42.00 against the US Dollar, similar to bitcoin. LTC price could decline heavily if it breaks the $37.00 support area.

Litecoin Price Analysis

In the past few days, there was an increase in selling on bitcoin, Ethereum, ripple, and litecoin against the US Dollar. LTC price failed to stay above the $45.00 and $44.40 support levels and declined recently.

There was a clear break below the $41.00 support level to start the decline. Besides, the price broke the $40.00 support and settled below the 55 simple moving average (4-hours).

Finally, it tested the $38.00 support area and a new weekly low is formed near the $38.00 level. The price is currently consolidating losses and trading near the $38.90 level. It seems like litecoin price is testing the 23.6% Fib retracement level of the recent decline from the $41.92 high to $38.00 low.

On the upside, the first major resistance is near the $40.00 level. The 50% Fib retracement level of the recent decline from the $41.92 high to $38.00 low is also close to the $40.00 resistance area.

More importantly, there is a major bearish trend line forming with resistance near $41.00 on the 4-hours chart of the LTC/USD pair. To move into a positive zone, the price must break the $40.00 and $41.00 resistance levels.

The next key barrier is near $42.80 and the 55 simple moving average (4-hours), above which the bulls are likely to aim a test of the $45.00 level. Conversely, the price might struggle to climb above $41.00 and $42.00.

On the downside, an initial support is near the $38.00 level, followed by the $37.00 area. If the price fails to stay above $37.00, there might be a sharp decline towards $35.00 and $33.20 in the near term.

Litecoin Price

Litecoin Price

Looking at the chart, litecoin price is clearly trading in a bearish zone below the $41.00 and $42.00 levels. Having said that, if the bulls are able to protect $37.00, there are chances of a decent recovery wave.

Technical indicators

4 hours MACD – The MACD for LTC/USD is slowly losing momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is now well below the 40 level.

Key Support Levels – $38.00 and $37.00.

Key Resistance Levels – $41.00 and $42.00.

The post Litecoin (LTC) Price Analysis: Can Bulls Defend This Key Support? appeared first on Live Bitcoin News.

Source: Live Bitcoin News

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