Litecoin (LTC) Price Analysis: Bulls Facing An Uphill Task At $42.50
- Litecoin price extended its decline and it even spiked below $40.00 against the US Dollar.
- LTC price is now correcting higher towards $42.50 and the 55 simple moving average (4-hours).
- There is a crucial bearish trend line forming with resistance near $42.50 on the 4-hours chart of the LTC/USD pair (data feed from Coinbase).
- The pair could either start a strong increase above $42050 or resume its decline towards $38.50.
Litecoin price is trading in a negative zone against the US Dollar, while bitcoin is recovering. LTC price could only start a strong recovery if it breaks the $42.50 resistance.
Litecoin Price Analysis
In the past few hours, there was a short-term upward move in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC price extended its decline below the $40.50 support level.
The price even spiked below the $40.00 support and settled well below the 55 simple moving average (4-hours). A new multi-week low is formed near $39.16 and the price is currently correcting higher.
It is trading above the $40.50 and $41.00 levels. There was a break above the 23.6% Fib retracement level of the downward move from the $44.67 high to $39.16 low. At the moment, the price is facing a strong resistance near the $42.20 and $42.50 levels, plus the 55 simple moving average (4-hours).
The 50% Fib retracement level of the downward move from the $44.67 high to $39.16 low is also preventing an upside break. More importantly, there is a crucial bearish trend line forming with resistance near $42.50 on the 4-hours chart of the LTC/USD pair.
Therefore, litecoin price must break the $42.50 resistance level to start a strong recovery wave. If the bulls succeed, the price might rise towards the $44.50 and $45.00 resistance levels in the near term.
Conversely, there is a risk of a fresh decline below the $40.50 and $40.00 support levels. In the mentioned case, the price may perhaps extend its decline below the $39.16 low and it could test the $38.50 support.
Looking at the chart, litecoin price is clearly trading near a crucial hurdle at $42.50. It could either start a strong increase above $42050 or resume its decline towards $38.50 in the near term.
4 hours MACD – The MACD for LTC/USD is struggling to move into the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is currently just above the 50 level.
Key Support Levels – $40.50 and $40.00.
Key Resistance Levels – $42.50 and $44.50.
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