08:38 pm

Litecoin Price Technical Analysis For 12/01/2016– Initial Sell Target Achieved

litecoin price. target met. illustration. newsbtc.

Key Highlights

  • Litecoin price failed to trade higher and moved lower to justify our sell idea as shared in yesterday’s post.
  • A bearish trend line formed on the hourly chart (data feed from Bitfinex) acted as a barrier and pushed the price down.
  • The price moved lower towards the $3.50 where there is a chance of buyers taking a stand in the near term.

Litecoin price moved a few points lower to fulfil our sell target, but it would be very hard to say that the price is in a bearish trend.

$3.50 as a Support Area

Litecoin price – after finding bids near the $3.50 support area – traded higher earlier, but yesterday sellers managed to take the price down. There was a bearish trend line on the hourly chart (data feed from Bitfinex), as highlighted in yesterday’s post. The trend line and resistance area played well and stalled an upside break in Litecoin price. There was a solid resistance confluence area formed near $3.557, which acted as a barrier and ignited a short-term bearish rally.

Litecoin Price Technical Analysis

The 100 hourly simple moving average (data feed from Bitfinex) along with the 50% Fib retracement level of the last drop from the $3.64 high to $3.47 low formed a confluence area near the trend line resistance. The stated confluence area perfectly prevented gains and pushed the price lower. An initial target of $3.50 was achieved, and now sellers have to be very careful as the mentioned area represents a major support area. It acted as a resistance and support many times, so it won’t be easy for sellers to break it. So, that is a reason why we can even attempt a small buy trade near the $3.50 support area.

If we look at the hourly chart with the data feed from HitBTC, then there is a contracting triangle formed. The price is currently struggling to break the triangle resistance trend line. The 100 hourly simple moving average is moving inside the triangle and the price is trading back and forth. The triangle resistance trend line is also coinciding with the 76.4% Fib retracement level of the last drop from the $3.72 high to $3.48 low.

Litecoin Price Technical Analysis

So, a break above the triangle resistance area is needed for more gains in the near term. And, a break above the 76.4% Fib retracement level of the last drop from the $3.72 high to $3.48 low could open the doors for a full test of the last swing high of $3.72. On the downside, if the price closes below the 100 hourly simple moving average, then the triangle support area may be tested where buyers could attempt to stop losses. A break and close below the triangle support area may call for more losses and may take the price towards the $3.48 level.

Looking at the indicators:

Hourly MACD – The MACD is about to change the slope to bullish zone, which is a positive sign.

Hourly RSI – The RSI is above the 50 level, suggesting buyers may try to take the price higher.

Intraday Support Level – $3.50

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.

Published by

Aayush Jindal

Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.