Litecoin started to plunge about a week ago. At the time, the price was trading slightly above $44 without much confidence in the bulls. However, after bitcoin [BTC] took the headlines over a few days of surprises, Litecoin joined other major altcoins in plunging alongside BTC.
The LTC/USD pair saw a major pullback towards $40 on the 21st of May. Thereafter, subsequent market swings have kept the pair trading below a bearish trendline which now happens to coincide with major resistance points at the 0.5 Fibonacci retracement level.
At present, Litecoin is changing hands at $43.5 after rising slightly by 2.28% over the past 24 hours. Its market cap stands at $2.78 billion amid $2.55 billion of exchange volumes in the same time frame.
LTC/USD Technical Analysis
From the technical point of view, LTC/USD pair is struggling around a minor resistance at the 0.23 Fibo level. Although price previously conquered the area, $42.9 (32.8% Fibonacci retracement level) is another area to watch.
In the event that the bulls overcome these hurdles, the price may leap towards a key level at 0.5 fib level.
There is a confluence of indications at the 0.5 Fibo level. An upswing in price may be faced with resistance by both the 50% fib retracement level and the short term declining resistance trendline, altogether bearish for litecoin.
In the event that the bears resist the assault at this major level, the price may be sent crashing heavily through a series of support already established. If the price falls below $41.76, then, we may be headed for lower prices, possibly, $39.
In the less likely short term event that Litecoin breaks out upwards of the trendline, further resistance lies at $43. As prices have previously found support at this level, the bulls may have the advantage of taking us uphill towards $44.50 in the short term.