Litecoin price struggled to hold the $32.00 support and declined further against the US Dollar. LTC/USD could even break the $30.00 support and test the $25.00 level.
Key Talking Points
- Litecoin price is under a lot of pressure below the $32.00 and $34.00 levels (Data feed of Kraken) against the US Dollar.
- There was a break below a key triangle pattern with support at $31.80 on the hourly chart of the LTC/USD pair.
- LTC price is under a lot of pressure and it could dive towards the $25.00 level in the near term.
Litecoin Price Forecast
Yesterday, we discussed the importance of the $32.00 support area for litecoin price against the US dollar. The LTC/USD pair attempted an upward move, but it failed to break the $34.00 resistance, resulting in a fresh decline.
Looking at the chart, LTC price declined recently and broke the $32.50 and $32.00 support levels. The decline was such that the price even broke the $30.00 support area and it is currently well below the 100 hourly simple moving average.
Besides, there was a break below a key triangle pattern with support at $31.80 on the hourly chart of the LTC/USD pair. It opened the doors for more losses and the price traded as low as $29.55.
The price is currently consolidating losses, with a bearish angle below the $31.50 level. An initial resistance is near the 23.6% Fib retracement level of the recent drop from the $34.11 high to $29.55 low.
However, the most important resistance is near the $32.50 level and the 100 hourly SMA. Moreover, the previous support near $32.00 is likely to act as a resistance. The 50% Fib retracement level of the recent drop from the $34.11 high to $29.55 low is also near $32.00.
Therefore, if litecoin price starts an upside correction, it is likely to face sellers near the $31.50 and $32.00 resistance levels. Only a successful close above the last swing high at $34.00 could open the doors a decent recovery. On the downside, LTC is likely to test the $26.00 or $25.00 level.
The market data is provided by TradingView.