The Litecoin price has dropped recently and tested the $ 30.00 support against the US dollar. LTC is approaching the next significant break, most likely above $ 33.00.
Key points of conversation
- The price of Litecoin has decreased and recently tested the key support of $ 30.00 (Kraken data feed) compared to the US dollar.
- There is a crucial bearish trend line in place with resistance at $ 32.00 on the 4-hour chart.
- The LTC price is probably preparing the next significant break above $ 33.00 or $ 25.00.
Price analysis and forecasts of Litecoin
After a solid rise above the $ 40.00 level, the litecoin price started to decline again compared to the US dollar. The LTC / USD pair traded below support levels $ 38.00 and $ 35.00 to move into a bearish zone.
Looking at the 4-hour chart, the price of the LTC rose near the $ 41.14 level and subsequently fell below the $ 35.00 support and the 100 simple (4 hours) moving average. There was also a break and a closing below the $ 33.00 support area.
The price tested the support of $ 30.00 and a minimum was formulated at $ 29.60. Subsequently, the price was corrected higher and traded above $ 31.00 and $ 32.00 levels. However, the upward move was limited by the Fib retracement level to 23.6% from the last downturn, from $ 41.14 upwards to $ 29.60 below.
More importantly, there is a bearish trend line in place with resistance to $ 32.00 on the 4-hour LTC / USD chart. The current price action suggests that the next move is approaching, which could be over $ 32.00-33.00 or below $ 30.00.
If there is a bullish break above $ 32.00 and $ 33.00, the price could recover towards $ 35.00. Represents the 50% fiber retracement level of the last drop from $ 41.14 up to $ 29.60 below. The next major resistances are $ 38.40 and $ 40.00.
On the other hand, the price of litecoin fails to gain traction, could break the supports of $ 30.00 and $ 29.60. In the cited bearish scenario, LTC could decline towards the next support at $ 27.50. The main support could be $ 25.00 where buyers are likely to emerge.
Market data is provided by TradingView.