Litecoin Technical analysis: LTC/USD shows negative signs, trend reversal in sight
|- The current resistance level at $222 is a significant hurdle; the price signals a likely trend reversal.
- LTC/USD price seems to be consolidating above the support level.
Litecoin price is trading at $211 on Wednesday's morning trading session. It opened trading at $217, and an upward trendline followed where it traded at highs of $222. However, the currency failed to maintain the upside gains, and the bears forced it into a descending channel.
The resistance level at $222 is a significant hurdle as the price signals a probable trend reversal that could see it trade below $200. Strong support is, however, forming at $210 and the price is within the $211 and $215 range. Similarly, LTC/USD did not manage to trade above the $225 resistance level in Yesterday’s trading. Instead, it took a negative turn, and there was a downside movement in price. The trading session has seen the price nearing $210 level, testing several times and essential forming support. The $211 low is showing signs of stability as the price on the intraday chart seems to be consolidating above the level.
The 23.6% Fib retracement level with a previous high of $260 to $210 low is acting like a resistance level. On the other hand, a forming descending channel on the daily chat has the resistance level at $222. LTC/USD has to hold the $210 support level to avoid risks of additional losses towards the primary support level at $200. If the declines go below $200, there is a possibility of a price reversal to last week’s low at $180.
Consequently, on the upside, a break past the $222 resistance level is a highly welcome gesture. The critical resistance still holds at $225, and if the price makes it past this key level, the gains might see the currency head back to the $250 mark.
LTC/USD price intraday chart
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