Litecoin price failed to hold the $135 and $130 support levels against the US Dollar. LTC/USD declined sharply and it could even test the $100 support level in the near term.
Key Talking Points
- Litecoin price declined heavily and even broke a major support at $130 (Data feed of Kraken) against the US Dollar.
- There is a new connecting bearish trend line forming with resistance near $130 on the hourly chart of the LTC/USD pair.
- The pair is currently trading above $120, but it may continue to move down in the near term.
Litecoin Price Forecast
There was an upside rejection in litecoin price from the $136 level against the US dollar. The LTC/USD pair tumbled and broke the $135-136 support area to move into a bearish zone.
Looking at the chart, the price was under a lot of pressure since it even failed to hold a major support at $130. The price even broke the last swing low of $128.50 and declined towards $125.
A low was formed at $124.91 and it seems like the price may continue to move down in the near term. On the upside, an initial resistance is near the 23.6% Fib retracement level of the last decline from the $136.15 high to $124.91 low.
However, the most important resistance on the upside is near $128.50 and $130.00. Both the stated levels acted as a support earlier, and now it may prevent gains above $130.00. There is also a new connecting bearish trend line forming with resistance near $130 on the hourly chart of the LTC/USD pair.
Moreover, the 50% Fib retracement level of the last decline from the $136.15 high to $124.91 low is positioned near the $130.50 level. Therefore, if the price corrects higher from the current levels, it will most likely face hurdles near $128 and $130.
On the downside, the $125 level is a short term support for litecoin. A break and close below $125 may perhaps open the doors for a push towards $100.
The market data is provided by TradingView.