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- Litecoin price failed to gain momentum and traded lower as sellers managed to gain control.
- A contracting triangle is at risk of a break lower if we look at the hourly chart with data feed from HitBTC.
- The price also closed below the 100 simple moving average on the 30-min chart (data feed from Bitfinex), which is a bearish sign.
Litecoin price failed to trade higher despite a few positive signs, and it looks like it may trade further lower in the near term.
New Lows in Making?
It looks like selling pressure prevailed and buyers failed to take the price higher. There is a contracting triangle pattern formed on the hourly chart (data feed from HitBTC), which is about to be broken. If there is a close below the highlighted triangle support trend line, then there are chances of it moving lower further. A new weekly low may be created, and the price might trade near $3.40.
The price is well below the 100 simple moving average, which is another bearish sign that may ignite a downside reaction. Yesterday, the price was above the 100 MA (30-min chart via the data feed from Bitfinex). However, buyers failed to capitalize on the same, and as a result, the price moved below the 100 MA.
Overall, the price remains at a clear risk of more losses in the near term. If there is an hourly close below the triangle support area, then the price may slide further. The next support area on the downside is around the $3.40 level.
Looking at the indicators:
Hourly MACD – The MACD is in the bearish zone, pointing towards a downside move.
Hourly RSI – The RSI is below the 50 level, which is another bearish sign that could encourage sellers.
Intraday Support Level – $3.45
Intraday Resistance Level – $3.55
Charts from Bitfinex and HitBTC; hosted by Trading View
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.