LTC/USD analysis: Will Litecoin break the important $27 support level?

From last week’s high at $38.5 the price of Litecoin has fallen by over 15% and is trading at around $32.8 on FXOpen now.

LTC/USD chart - FXOpen

The downtrend line (purple line) on the hourly chart hasn’t been broken yet, but as the price action is showing higher lows and lower highs we may see a breakout soon. The price action is indicating that the sellers and the buyers are getting closer to each other so that breakout can happen anytime.

As the Minute correction target was met (with a wick) on the horizontal support level at $27.74, the breakout might occur from the upside breaking the downtrend’s resistance line.

Zooming out to the 4-hour chart, the downtrend’s resistance has been broken two times but both times resulted in a straight downfall. We shouldn’t assume that the short-term recovery has started until the LTC/USD pair goes beyond the prior horizontal support level at $33.29.

LTC/USD chart2 - FXOpen

However, if the price of altcoin continues its downward trajectory there is a strong support at the $27 level. Judging by the price action and the wicks from the upside there are some significant buyers there.

BEST BROKERS TO TRADE CRYPTO

RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.