Key Talking Points
- Litecoin price is currently under pressure below the $53.00 and $52.70 levels (Data feed of Kraken) against the US Dollar.
- There was a break below a major bullish trend line with support at $53.80 on the hourly chart of the LTC/USD pair.
- LTC price might find support near the $51.50-51.70 zone for a short term recovery.
Litecoin Price Forecast
There was no major recovery in litecoin price above the $54.00 resistance against the US dollar. The LTC/USD pair extended its decline and broke the $52.80 support area as well.
Looking at the chart, LTC price started a downside correction from the $56.35 high and declined below the $54.00 and $52.80 support levels. There was even a close below the $53.50 level and the 100 hourly simple moving average.
The recent decline was such that the price even broke the 61.8% Fib retracement level of the last major upside from the $50.27 low to $56.35 high. Besides, there was a break below a major bullish trend line with support at $53.80 on the hourly chart of the LTC/USD pair.
These all are negative signs and it indicates chances of more declines below $52.00 in the near term. An immediate support is at $51.80 and the 76.4% Fib retracement level of the last major upside from the $50.27 low to $56.35 high.
The mentioned $51.75-51.80 zone may perhaps act as a strong support since it was a resistance earlier. If buyers protect losses, the price could bounce back above the $53.00 level.
However, the 100 hourly SMA and the $53.50 level might act as a barrier for buyers. Moreover, the $54.00 level is a strong resistance, above which the price will most likely resume its upside move.
Overall, the $51.70 support area holds the key for the next move in litecoin price in the near term.
The market data is provided by TradingView.