The price of Litecoin has dropped significantly below $80 and $70 against the US Dollar. LTC is attempting a recovery wave but the upsides may be limited above $70.
- Litecoin corrected losses from 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 key bearish trend line forming with resistance near $66.00 on the 4-hour chart of the LTC/USD pair (data feed from Kraken).
- The price may recover above $66 but bears may remain active near $70.
Litecoin Price Begins To Recover
This past week, there was a sharp decline in Bitcoin, Ethereum, Litecoin, and other altcoins against the US Dollar. The price of LTC reached a high of almost $85 before it started a new decline.
There is a sharp decline below $80 and $70. The price has dropped below $60. It traded as low as $55.78 and has just started an upside correction. There is a slight rise above the $60 resistance level. The price rose 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 key bearish trend line forming with resistance near $66.00 on the 4-hour chart of the LTC/USD pair.
On the upside, immediate resistance is near the $66 zone. The next major resistance is near the $70 level. This is near 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 may start another strong rise.
Source: LTCUSD on TradingView.com
In the stated case, the price is likely to continue higher at the $75 and $78 levels. Any further gains could send the price of LTC to the $85 resistance zone.
New LTC Reduction?
If the price of Litecoin fails to clear the resistance level of $70, there may be a new decline. Initial support on 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 to the $56.00 support. Any further losses could send the price to the $52 support.
Technical indicators:
4-hour MACD – The MACD is currently moving into the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for LTC/USD is still below the 50 level.
Major Support Levels – $63.50 followed by $60.00.
Major Resistance Levels – $66.00 and $70.00.
