itecoin price declined recently after it failed near the $37.00 level. LTC is likely to start a fresh upward move above the $32.00 and $34.00 resistances.
Key Talking Points
- Litecoin price declined recently below the $34.00 support level (Data feed of Kraken) against the US Dollar.
- There was a break above a short term channel with resistance at $31.00 on the hourly chart.
- LTC price may continue to trade higher towards the $34.00 or $35.00 resistance levels.
Litecoin Price Analysis
Recently, we discussed the chances of litecoin price testing the $40.00 resistance against the US dollar. The LTC/USD pair did move higher, but it failed to move past the $37.00 resistance.
Looking at the chart, LTC price formed a top near the $36.73 level and later started a downside correction. It declined sharply and broke the $35.00 support level. There was also a close below the $32.00 level and the 100 hourly simple moving average.
The price traded close to the $30.00 level where buyers emerged. A low was formed at $26.69 and later the price starting moving higher. It broke the 23.6% Fib retracement level of the recent decline from the $36.73 high to $26.69 low.
Moreover, there was a break above a short term channel with resistance at $31.00 on the hourly chart. It has cleared the path for a push towards the $33.00 level and the 100 hourly SMA.
The next major resistance is near $33.20 and the 50% Fib retracement level of the recent decline from the $36.73 high to $26.69 low. If there is a break above the $33.00 and $34.00 resistance levels, there could be a solid upward move in the near term.
Overall, litecoin price clearly failed to gain pace above the $37.00 level and declined heavily. Going forward, it must move past the $34.00 resistance to make another attempt. If not, it could revisit the $30.00 support area. Below $30.00, the price may even trade towards the $28.00 support in the short term.