Litecoin price struggled to move above the $225 resistance against the US Dollar. LTC/USD is currently trading near the $210-215 support and is showing a few negative signs.
Key Talking Points
· Litecoin price could not trade above the $225 resistance yesterday (Data feed of Kraken) against the US Dollar.
· There is a declining channel forming with current resistance at $222 on the hourly chart of the LTC/USD pair.
· The pair must stay above the $210 level and the 100 hourly simple moving average to avoid further declines.
Litecoin Price Forecast
Yesterday, we discussed about a major support near $225 in litecoin price against the US dollar. The LTC/USD pair made an attempt to break the $225 resistance, but it failed. As a result, there was a downside move and the pair moved below $220.
However, the downside move was protected by the $215 support and the 100 hourly simple moving average. The $211 low is intact and it seems like the price is consolidating above the stated level.
On the upside, the 23.6% Fib retracement level of the last drop from the $260 swing high to $211 low is acting as a resistance. There is also a declining channel forming with current resistance at $222 on the hourly chart of the LTC/USD pair.
The pair may continue to follow the declining channel path with support on the downside at $215 and the 100 hourly SMA. Below $215, the last swing low of $210 is also a major support.
If the pair fails to hold the $210 support, there is a risk of more losses even below the $200 support. Further below the $200 level, the price may perhaps test the $180 level.
On the upside, a break above the channel resistance at $222 is needed. However, the most important resistance is at $225. Above $225, the price may accelerate higher towards the $250 level.
In short, the price is at risk of a downside move if it fails to trade above the $225 resistance.
Trade safe traders and do not overtrade!