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- Litecoin is started an upside correction from the $42.15 swing low against the US Dollar.
- The price is now trading above the $45.50 resistance, but it is well below $48.40 and $50.00.
- There is a major bearish trend line forming with resistance near $47.80 on the hourly chart of the LTC/USD pair (data feed from Kraken).
- Bitcoin price is currently trading in a range above the $7,000 and $6,950 support levels.
Litecoin price is still in a downtrend below the $50.00 resistance against the US Dollar. LTC could only start an increase if it breaks $50.00. If not it could slide towards $40.00.
Litecoin Price Analysis
This past week, litecoin price struggled to climb above the $50.00 resistance area against the US Dollar. As a result, LTC price extended its decline below the $45.00 support and the 100 hourly simple moving average.
Moreover, it traded close to the $42.00 level and formed a new monthly low at $42.15. Later, there was an upside correction, similar to bitcoin, Ethereum, ripple and BCH.
Litecoin recovered above the $44.00 and $45.00 resistance levels. Besides, it spiked above the $47.00 level and the hourly simple moving average. However, the upward move was capped by the $47.50 resistance area.
More importantly, there is a major bearish trend line forming with resistance near $47.80 on the hourly chart of the LTC/USD pair. If there is an upside break above the $47.80 and $48.50 resistance, the price could continue to rise.
The main resistance is near the $50.00 area, above which there are chances of a decent run towards the $54.00 and $55.00 resistance levels. On the downside, an initial support is near the $45.50 level.
The next support for litecoin is near the $44.85 level. It is close to the 50% Fib retracement level of the recent rise from the $42.15 low to $47.61 high. A clear break below the $44.85 support might push the price back into a bearish zone.
In the mentioned case, the price could revisit the $42.20 support area. An intermediate support is near the $43.40 level. It represents the 76.4% Fib retracement level of the recent rise from the $42.15 low to $47.61 high.
Looking at the chart, litecoin price is likely facing a couple of strong resistances near $48.50 and $50.00, similar to bitcoin near $7,300 and $7,400. A successful break above $50.00 is needed for a strong rise.
Technical indicators:
Hourly MACD – The MACD is slowly moving back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for LTC/USD is currently just above the 40 level.
Major Support Levels – $45.50 followed by $43.40.
Major Resistance Levels – $48.50 and $50.00.
