• Litecoin (LTC) is currently trading below the $90 resistance level against the US Dollar.
• There is a major contracting triangle forming with resistance near $89.20 on the 4-hour chart of the LTC/USD pair.
• If there is a downside break below the $85.00 support, the price could accelerate lower towards the $80 level in the near term.
Overview of Litecoin Price Analysis
The price of Litecoin (LTC) has settled below the $90 resistance zone against the US Dollar, trading under both $90 and its 55 simple moving average (4 hours). Currently, there is a major contracting triangle forming with resistance near $89.20 on the 4-hour chart of the LTC/USD pair which could result in an increase if it breaks through this barrier. However, if it fails to do so and breaks below its key support at $85.00 then it could see a further decrease down to around $80 in the near term.
Price Movement Below Resistance Level
In recent hours, there was a minor increase for Bitcoin, Ethereum, Ripple and Litecoin against USD but Litecoin soon after fell back down again below its key resistance level at 90$. It also broke through its support levels at 88$ and 85$ before reaching its lowest point at 85.13$. The price attempted a recovery wave as it moved above 50% Fib retracement level from its downward movement from 91.46 swing high to 85.13 low however it has yet to clear 92$ in order to fully recover and start increasing again past 100$.
Key Support Levels
The main support levels that Litecoin needs to hold onto are 86.60$ and 85$, any breakdowns beneath these two points will cause a rapid decrease towards 80$ in near future if not halted by other supports or recovered by itself as stated previously above 92$.
Technical Indicators Analysis
Looking into technical indicators such as 4 hour MACD and RSI we can see that MACD movements have been losing momentum within bearish zone while RSI has dropped beneath 50 level which shows signs of further decreases unless bulls come back strong soon enough to reverse this situation otherwise we may even see prices fall beyond 80$.
To conclude, Litecoin is currently having difficulties staying above 90$, thus we need bullish momentum soon enough to push prices up above 92$ for further increases up towards 100$ per coin or else bears will take control quickly pushing prices down towards 80$.