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- Litecoin price after correcting lower found support near $3.47 and currently moving back higher.
- There is a bearish trend line formed on the hourly chart (data feed from Bitfinex), which is likely to be tested in the short term.
- A major support on the downside can be seen on the 2-hours chart (data feed from HitBTC) in the form of a bullish trend line.
Litecoin price may gain further, but buyers need to clear the highlighted trend line and resistance area on the hourly chart for a move towards $3.65.
Can Buyers Make it?
Litecoin price finally managed to find bids near a major support area of $3.50, as it represents a monster barrier for sellers. It acted as a support and resistance both on many occasions, and can be seen as a pivot point for the price. The price after testing the stated support area moved back higher, and currently heading towards a bearish trend line formed on the hourly chart (data feed from Bitfinex). The stated trend line acted as a catalyst for a downside move, and may continue to stall gains in the short term.
If buyers need to take the price back towards the last swing high of $3.65, then they have to clear the trend line and resistance area. It is currently finding sellers near the 50% Fib retracement level of the last drop from the $3.64 high to $3.47 low. The best part is that buyers are making an attempt to take the price above the 100 hourly simple moving average, which is a positive sign. The 61.8% Fib retracement level of the last drop from the $3.64 high to $3.47 low is also just above the highlighted trend line and resistance area. So, it won’t be easy for buyers to break it and take the price higher.
There are a few positive signs if we look at the higher timeframe. As stated in the weekly analysis, the price this past week closed above a monster triangle pattern formed 2-hours chart with data feed from HitBTC. The same broken triangle trend line acted as a support, and now there is a bullish trend line formed. The highlighted support trend line is providing help to the buyers and preventing any additional losses. It may act as a buy zone, and may later push the price higher.
The price also tested the 76.4% Fib retracement level of the last drop from the $3.79 high to $3.46 low one, and it won’t be easy for sellers to break it. The most important point is the fact that the price is above the 100 simple moving average (2-hours chart with data feed from HitBTC), which is sign that buyers are trying their best to prevent any more losses.
Looking at the indicators:
Hourly MACD – The MACD is in the bullish zone, which is sign of more gains.
Hourly RSI – The RSI is above the 50 level, which is another bullish sign in the short term.
Intraday Support Level – $3.50
Intraday Resistance Level – $3.58
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.