Litecoin price declined further and moved below the $120 level against the US Dollar. LTC/USD is likely to decline further and it may even test the $100 level.
Key Talking Points
- Litecoin price fail to move higher and it declined below the $120 level (Data feed of Kraken) against the US Dollar.
- This week’s highlighted key bearish trend line with current resistance near $125 is still in place on the hourly chart of the LTC/USD pair.
- The pair is likely to extend declines and it may accelerate declines toward $100.
Litecoin Price Forecast
There further bearish pressures on litecoin price as it fell further from the $130 swing high against the US dollar. The LTC/USD pair declined and cleared the $120 support level, which opened the doors for more losses.
The pair even broke the $110 level and it formed a low at $109. At the moment, the price is correcting higher above $100 with a tiny bullish bias. An initial resistance is close to the 23.6% Fib retracement level of the downside move from the $139 high to $109 low.
It seems like the price may correct in the short term, but the broken support at $120 may act as a hurdle. Moreover, this week’s highlighted key bearish trend line with current resistance near $125 is still in place on the hourly chart of the LTC/USD pair.
Lastly, the 50% Fib retracement level of the downside move from the $139 high to $109 low is near the same trend line resistance to act as a barrier for gains. Only a close above the $125 and $130 resistance levels could open the doors for an upside recovery.
On the downside, the recent low of $109 is a tiny support. Once there is a break below the $109 level, the price will most likely test the $100 level. Below the mentioned $100 level, there could be heavy downsides.
The overall technical structure is negative as long as the price is below $140.
Trade safe traders and do not overtrade!
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