Litecoin price is trading lower and is currently below $180 against the US Dollar. LTC/USD must stay above the $170 support, otherwise there is a risk of a downside break.
Key Talking Points
· Litecoin price is under pressure and is currently trading below the $180-182 support (Data feed of Kraken) against the US Dollar.
· There is a connecting short term bearish trend line forming with resistance at $175 on the hourly chart of the LTC/USD pair.
· The pair must break the $175 and $180 resistance to avoid further declines in the near term.
There was an increase in selling pressure from the $190 resistance in litecoin price against the US dollar. The LTC/USD pair started a downside move and it broke the $182 and $180 support levels.
It is currently trading well below the 100 hourly simple moving average and $180. It seems like sellers are in control and they push the price further lower towards the $170 support.
The price already tested the $170 support yesterday and formed a low. It recovered a few points, but the 23.6% Fib retracement level of the last drop from the $192 high to $171 low acted as a resistance.
There is also a connecting short term bearish trend line forming with resistance at $175 on the hourly chart of the LTC/USD pair. The pair is currently moving lower and it seems like it could retest $170.
Should the price fails to hold the $170 support, there could further increase in bearish pressures and the price may decline towards $160. On the flip side, if there is a break above the $175 level, the price may test the $180-182 resistance.
The $182 level is significant since it is near the 50% Fib retracement level of the last drop from the $192 high to $171 low. Moreover, the 100 hourly SMA is also around $182. Therefore, $182 could act as a strong resistance.
A close above $182 could initiate a decent recovery, but until then the pair remains at a risk.
Trade safe traders and do not overtrade!