Litecoin price is struggling below $58 against the US Dollar, similar to Bitcoin. LTC price could resume its decline if there is no clear move above $58.
Litecoin is a decentralized cryptocurrency, created by Charlie Lee on October 13, 2011. Nicknamed “Bitcoin’s Silver to Gold”, Litecoin is famous in the world of cryptocurrencies.
Litecoin is close to Bitcoin in some of its functionality, but it has fundamental differences. For example:
- A proof of work that uses the scrypt hash function instead of SHA-256
- Four times faster block creation with an average interval of 2.5 minutes instead of 10 minutes
- Four times the total number of units with 84 million instead of 21 million
- A mining difficulty that changes every two and a half days instead of two weeks
Litecoin is therefore a famous cryptocurrency, for a long time, it was among the first capitalization markets, with several billion euros. Barring some major issues, Litecoin will certainly remain one of the top cryptocurrencies on the market.
In the last few days, there was a further decline in Bitcoin, Ethereum, ripple and Litecoin against the US dollar. Earlier, LTC formed a short-term top near $58 and started a fresh decline.
There was a clear move below the $56 and $55 support levels. The price even fell below the $55 level and the 55 simple moving average (4 hours). However, the bulls were active near the $51.50 level. A low is formed near $51.69 and the price is now consolidating losses.
Major Highlights
There was a move above the $53 resistance zone. It scaled above the 23.6% Fibonacci retracement level of the recent drop from the $58.31 high to $51.69 low. The price is now trading below $55 and the 55 simple moving average (4 hours).
On the upside, the price is facing resistance near the $54.80 and $55.00 levels. There is also a key bearish trend line forming with resistance near $55 on the 4-hours chart of the LTC/USD pair.
The trend line is near the 50% Fibonacci retracement level of the recent drop from the $58.31 high to $51.69 low. The next major resistance lies near the $58 level. A clear move above the $58.00 level could push the price towards the $60 level.
On the downside, immediate support is near the $52 level. The next key support is near the $51.50 level. If there is a downside break below the $51.50 support, the price could accelerate down towards the $50 level in the near term.
Litecoin price is trading clearly below $60 and the 55 simple moving average (4 hours). Overall, the price could rally but the upside could be limited above the $58 and $60 levels.
Technical Indicators
4 hours MACD – The MACD for LTC/USD is now losing pace in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for LTC/USD is now close to the 50 level.
Key Support Levels: $52 and $51.50
Key resistance levels: $55 and $58.
It is worth remembering that the volatility of digital currencies is one of the characteristics that makes them very valuable assets. The possibility of the price of a coin rising by more than 100% in a short period of time creates numerous profitable opportunities for investors. However, it also comes with risks, as the price can drop by more than 70% in an instant. For this reason, it is always advisable to try integrating risk management techniques when making predictions based on probability. In other words, do your own research before making major decisions.
By Audy Castaneda
