Litecoin (LTC) Price Analysis: Another Possible Dip Before Fresh Rally

Litecoin price topped above the $53.00 level and later declined sharply against the US dollar. LTC is currently correcting higher, but the $47.50 resistance could prevent gains.

Key Talking Points

• Litecoin price declined heavily and broke the $50.00 and $47.50 supports (Data feed of Kraken) against the US Dollar.
• There is a short term ascending channel formed with resistance near $47.50 on the hourly chart.
• LTC price corrected higher, but the previous support at $46.50 and $47.50 are acting as hurdles.

Litecoin Price Analysis (LTC)

Recently, we saw a nice upward move in litecoin price above the $50.00 resistance against the US dollar. The LTC/USD pair even traded above the $52.00 level before sellers appeared near the $53.50 level and later the price declined sharply.

Looking at the chart, LTC price topped near the $53.47 level and later declined below the $50.00 support area. More importantly, there was a break below the key supports near the $47.50 and $46.50 levels, opening the doors for more losses.

The price even settled below the $47.50 level and the 100 hourly simple moving average. A low as formed at $42.48 and later the price corrected higher. It moved above the $44.00 level and the 23.6% Fib retracement level of the recent decline from the $53.47 high to $42.48 low.

However, the upside move faced sellers near the previous support at $46.50 and $47.50. The next key resistance is near the $48.00 level and the 100 hourly simple moving average.

Besides, the 50% Fib retracement level of the recent decline from the $53.47 high to $42.48 low is also near the $48.00 level. At the outset, there is a short term ascending channel formed with resistance near $47.50 on the hourly chart.

It seems like litecoin price might test the $47.50 and $48.00 resistance levels in the near term. If LTC buyers fail to gain strength above $48.00, there could be a bearish reaction. On the downside, an initial support is at $44.00, below which the price could revisit the $42.50 support in the coming sessions.

The market data is provided by TradingView.