Litecoin price failed to stay above the $120-122 support against the US Dollar. LTC/USD may continue to move down towards the $115 support.
Key Talking Points
- Litecoin price failed to hold gains and broke a major support at $122 (Data feed of Kraken) against the US Dollar.
- There was a break below a crucial bullish trend line with support at $121.00 on the hourly chart of the LTC/USD pair.
- The pair is now in a bearish zone and it may perhaps test the $115 support in the short term.
Litecoin Price Forecast
After trading above the $125 level, litecoin price faced selling pressure against the US dollar. The LTC/USD pair traded as high as $127.93 and later started a downside move.
Looking at the chart, the price declined heavily and broke many important supports on the way down such as $125 and $122. A break and close below the $122 level and the 100 hourly simple moving average signaled a bearish scenario.
During the decline, the price also broke the 50% Fib retracement level of the last leg from the $116.70 low to $127.93 high. Moreover, there was a break below a crucial bullish trend line with support at $121.00 on the hourly chart of the LTC/USD pair.
The pair traded close to the $116 support and a low was formed at $116.05. The price is currently correcting higher with an initial resistance around the 23.6% Fib retracement level of the last decline from the $127.93 high to $116.05 low.
However, the most important resistance on the upside is at $122, which is a key pivot level. It now coincides with the 50% Fib retracement level of the last decline from the $127.93 high to $116.05 low.
Furthermore, the 100 hourly SMA is also positioned near $122 to prevent upsides. Therefore, if the price corrects higher from the current levels, it could face a strong selling interest near $122.
On the downside, litecoin price may well retest the $115 support in the near term.
The market data is provided by TradingView.