Litecoin (LTC) Price Analysis: Testing Crucial Support at $120

Litecoin price is showing bearish signs below $135 against the US Dollar, similar to bitcoin. LTC price could dive if there is a clear break and close below $120.

Litecoin Price Analysis

This week, there was a fresh decline in bitcoin, Ethereum, ripple, and litecoin against the US Dollar. Earlier, LTC made an attempt to gain strength above the $150 resistance level, but it failed.

The recent swing high was formed near $148 before the price started a fresh decline. There was a clear break below the $135 support level and the price settled below the 55 simple moving average (4-hours).

There was also a break below a key bullish trend line with support near $136 on the 4-hours chart of the LTC/USD pair. The pair even broke the $125 support and spiked below $120. A low is formed near $118 and the price is currently consolidating losses above $120.

It is testing the 23.6% Fib retracement level of the downward move from the $148 swing high to $118 low. The first major resistance is near the $132 level.

The 50% Fib retracement level of the downward move from the $148 swing high to $118 low is also near $133 to act as a hurdle. The main resistance is now forming near the $140 level and the 55 simple moving average (4-hours).

There is also a connecting bearish trend line with resistance near $140 on the same chart. If there is no upside break above $132 or $140, there is a risk of more downsides. An initial support is near the $120 level. If there is a clear break below $120 and $118, the price could dive towards the $100 support.

Litecoin Price

Looking at the chart, litecoin price is clearly trading in a bearish zone below $132 and $135. Overall, the price could correct higher, but it is likely to face many hurdles such as $135 and $140 in the near term.

Technical indicators

4 hours MACD – The MACD for LTC/USD is currently losing momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for LTC/USD is well below the 50 level.

Key Support Levels – $120 and $100.

Key Resistance Levels – $132 and $140.

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