LTCUSD Price Key Highlights
- LTCUSD price has been on the decline, moving below a descending trend line connecting the latest highs on the 1-hour time frame.
- Price seems to be taking a break from its recent dive, opening the possibility for a correction to the trend line.
LTCUSD price could be in for another pullback from its current downtrend, offering sellers a better price to load up on their short positions.
Support Turned Resistance
The 50% and 61.8% Fib levels are closer to the trend line, also coinciding with a broken near-term support level around 3.200. A larger correction could last until the 100 SMA, which typically serves as a dynamic inflection point.
Speaking of moving averages, the 100 SMA is below the 200 SMA, which means that the path of least resistance is to the downside. If any of the nearby resistance areas are able to keep gains in check, LTCUSD price could resume its decline to the previous lows at 2.915 or much lower.
Stochastic is on the move up and is stalling on middle ground, which suggests that there’s still enough buying pressure left to sustain the retracement. Similarly, RSI is on the way up, indicating that buyers are in control of price action for now.
If bullish pressure continues to build up, LTCUSD price could make an attempt to break past the falling trend line resistance, possibly starting a short-term reversal. A move past the 3.350-3.400 level could be enough to signal that an uptrend is brewing.
Intraday support level – 2.915
Intraday resistance level – 3.350
Technical Indicators Settings:
- 100 SMA and 200 SMA
- Stochastic (8, 3, 3)
- RSI (14)
Charts from BitFinex, courtesy of TradingView