The price of Litecoin has fallen significantly below $80 and $70 against the US dollar. LTC is attempting a recovery, but upside may be limited above $70.
- Litecoin is correcting losses incurred at the $56 support zone against the US dollar.
- The price is currently trading below $70 and the 100 simple moving average (4-hours).
- There is a major bearish trendline forming on the 4-hours chart of the LTC/USD pair with resistance near $66.00 (data feed from Kraken).
- The price may recover above $66, but bears may remain active near $70.
Litecoin price begins to recover
Bitcoin, Ethereum, Litecoin and other altcoins plummeted against the US dollar last week. LTC price made a high near $85 before starting a new downtrend.
There was a sharp decline below $80 and $70. The price also fell below $60. It traded as low as $55.78 and recently began an upward correction. There was a slight uptick above the $60 resistance. The price broke above the 23.6% Fib retracement level of the downward move from the $85.39 swing high to the $55.78 low.
Litecoin is currently trading below $70 and the 100 simple moving average (4-hours). There is also a major bearish trend line forming on the 4-hours chart of the LTC/USD pair with resistance near $66.00.
On the positive side, immediate resistance is near the $66 zone. The next major resistance is near the $70 level. This is close to the 50% Fib retracement level of the downward move from the $85.39 swing high to the $55.78 low. If there is a clear break above the $70 resistance, the price could begin a strong rise once again.
Source: TradingView.com LTCUSD
As stated, the price is likely to continue rising towards the $75 and $78 levels. Any further gains could push the price of LTC towards the $85 resistance area.
A new decline in LTC?
If Litecoin price fails to clear the $70 resistance level, a fresh decline may occur. Initial support for the downside is near the $63.50 level.
The next major support is forming near the $60 level, below which there is a risk of a move towards the $56.00 support. Any further losses could push the price towards the $52 support level.
Technical indicators:
4-Hour MACD – MACD is now pacing in bullish territory.
4-Hour RSI (Relative Strength Index) – The RSI for LTC/USD is still below the 50 level.
Key support levels – $63.50 followed by $60.00.
Key resistance levels – $66.00 and $70.00.