Litecoin price is struggling to stay above the $40.00 support against the US Dollar. LTC/USD remains at a risk of a solid downward move towards $35.00.
Key Talking Points
- Litecoin price is facing an increased selling pressure below the $42.00 level (Data feed of Kraken) against the US Dollar.
- There is a connecting bearish trend line formed with resistance at $42.00 on the hourly chart of the LTC/USD pair.
- LTC price could accelerate declines once there is a break below $40.00 and $39.50.
Litecoin Price Forecast
This past week, we saw a major downward move from the $50.00 swing high in litecoin price against the US dollar. The LTC/USD pair dropped heavily and settled below the $45.00 and $42.00 support levels.
Looking at the chart, LTC price even broke the $40.00 level and traded as low as $39.60. Later, there was an upside correction and the price moved above the $42.00 level. There was also a break above the 23.6% Fib retracement level of the recent drop from the $49.90 high to $39.60 swing low.
However, the upside move was capped by the $44.00 and $45.00 resistance levels. The price declined back below $42.00, but it later made another attempt to climb higher.
Sellers remained in action near the $43.00 level and the 100 hourly simple moving average. There is also a connecting bearish trend line formed with resistance at $42.00 on the hourly chart of the LTC/USD pair.
Therefore, it won’t be easy for buyers to break the $42.00 and $43.00 resistance levels. The next major resistance is near $44.75 since it coincides with the 50% Fib retracement level of the recent drop from the $49.90 high to $39.60 swing low.
The current price action is very bearish and it seems like the price could gain pace below the $40.00 support in the near term. If sellers gain control, litecoin price may tumble below the $39.60 swing low. In the mentioned case, the next target for LTC buyers could be $35.00.
The market data is provided by TradingView.
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