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- Litecoin price is facing a crucial resistance around the $3.55-60 area where sellers defended the upside more than five times.
- There is a major bearish trend line formed on the hourly chart with data feed from HitBTC, which is acting as a barrier for more gains.
- The price is now below the 100 simple moving average (H1), which another bearish sign.
Litecoin price continuously failed to trade above the $3.50-60 resistance area, suggesting that sellers are in control and may take it lower moving ahead.
Sell Near $3.55-60?
Litecoin’s price after trading as low as $3.46 managed to recover from losses, and corrected higher. However, there is a monster barrier formed near $3.55-60 for buyers, which is acting as a hurdle and preventing more gains. There is a confluence resistance area formed around the stated level. A bearish trend line on the hourly chart with data feed from HitBTC and the 38.2% Fib retracement level of the last drop from the $3.79 high to $3.46 low are positioned around $3.55-60.
Moreover, the 100 simple moving average (H1) is also just below the highlighted trendline and resistance area. The price has just moved below it, which is a sign that sellers are in control and may take the price further lower. On the downside, the most significant support is near the last swing low of $3.46 where buyers may take a stand. If buyers manage to take the price higher from the current levels, then a break above the trendline and resistance area could take the price towards the 50% Fib retracement level of the last drop from the $3.79 high to $3.46 low. However, it won’t be an easy task for buyers to break the $3.55-60 resistance area.
Looking at the lower time frame chart, there are a few positive signs. There is a bullish trend line formed on the 30-min chart via the data feed from Bitfinex, which is currently acting as a pivot area and pushing the price higher. The price is currently testing the 50% Fib retracement level of the last wave from the $3.37 low to $3.52 low. There is a difference if levels compare to data feeds from Bitfinex and HitBTC.
If the price trades closer to the highlighted trendline and support area (30M chart), there is a chance of it gaining traction. As long as the price is above it, there is hope that buyers may attempt to take the price higher. However, there is a bearish sign, as the price has moved below the 100 simple moving average (30-min chart via the data feed from Bitfinex).
Overall, the price is trading near crucial levels, both in terms of support and resistance. A break on either side could ignite the next move in the short term.
Looking at the indicators:
Hourly MACD – The MACD is in the bearish zone, suggesting more losses moving ahead.
Hourly RSI – The RSI is making an attempt to recover from the oversold level, but may struggle near the 50 area.
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.