The Litecoin price is struggling to rise above $66.40 against the US dollar. LTC could revisit the $60 support before the bulls take a strong stance.
- Litecoin corrects losses from the $63 support zone against the US dollar.
- The price is now trading below $66 and the 100 simple moving average (4 hours).
- A major contracting triangle is forming with resistance near $65.50 on the 4-hour chart of the LTC/USD pair (data feed from Kraken).
- The price could drop towards the $60 support before a new increase begins.
Litecoin price signals a bearish move
This past week saw another decline in Bitcoin, Ethereum, Litecoin and other altcoins against the US dollar. The LTC price topped out near $68.40 before starting a new decline.
The price traded below the USD 66.40 and USD 65.00 support levels. It has retested the $63.00 support zone. A low was formed near $63.01 and the price is now trying to make a new move higher. There was a move above the resistance at $65.20.
The price peaked above the 50% Fib retracement level of the downward move from the $68.38 swing high to the $63.01 low. Litecoin is now trading below $66 and the 100 simple moving average (4 hours). There is also a major contracting triangle forming with resistance around $65.50 on the 4-hour chart of the LTC/USD pair.
On the upside, immediate resistance is near the $65.50 zone. The next major resistance is near the $6.40 level. It is close to the 61.8% Fib retracement level of the downward move from the $68.38 swing high to the $63.01 low. If there is a clear break above the USD 66.40 resistance, the price could trigger another strong rise.
Source: LTCUSD on TradingView.com
In the said case, the price is likely to continue higher towards the USD 68.40 and USD 70 levels. Any further gains could send LTC’s price towards the $75 resistance zone.
Downward thrust in LTC?
If Litecoin price fails to break the USD 66.40 resistance level, a fresh decline could occur. The initial downside support is near the $63.00 level.
The next major support is forming near the $60 level, below which there is a risk of a move towards the $58.00 support. Any further losses could perhaps send the price towards the $55 support.
Technical indicators:
4-hour MACD – The MACD is now losing pace in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for LTC/USD is still below the 50 level.
Major support levels – $63.00 followed by $60.00.
Major resistance levels – $66.40 and $68.40.
