Litecoin price failed to recover above $ 56.00 and declined against the US Dollar. LTC/USD is now at a risk of more losses below $ 52.00 in the near term.
Key Talking Points
· Litecoin price recovery was failed near the $ 55.50 and $ 56.00 resistances (Data feed of Kraken) against the US Dollar.
· There is a major contracting triangle forming with resistance near $ 55.50 on the hourly chart of the LTC/USD pair.
· LTC price is currently struggling below $ 56.00 and it could decline further below $ 52.00.
Litecoin Price Forecast
Yesterday, there was a minor upside move in litecoin price above the $ 54.00 level against the US dollar. The LTC/USD pair traded towards the $ 55.50 and $ 56.00 resistance levels where it faced selling interest.
Looking at the, LTC price attempted a decent upside recovery above the $ 55.00 level and the 100 hourly simple moving average. The price also surpassed the 50% Fib retracement level of the recent decline from the $ 58.40 high to $ 51.91 low.
There was even a spike above the $ 56.00 resistance, but buyers failed to hold gains above the 100 hourly SMA. It also failed to settle above the 61.8% Fib retracement level of the recent decline from the $ 58.40 high to $ 51.91 low.
The price started declining and is currently trading well below the $ 55.00 level and the 100 hourly SMA. More importantly, there is a major contracting triangle forming with resistance near $ 55.50 on the hourly chart of the LTC/USD pair.
If the price breaks the triangle support at $ 53.50, there could be a downside break below the $ 52.00 support. The next major support in this case is around the $ 50.00 level.
On the other hand, if buyers succeed in clearing the $ 55.50 resistance and the 100 hourly SMA, there may well be more gains above the $ 56.00 level. In short, litecoin price is approaching the next break either above $ 56.00 or below $ 52.00 in the near term. Below $ 52.00, there is a risk of sharp declines in LTC/USD.
The market data is provided by TradingView.
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