29-07-2016
09:39 pm
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Coince - Bitcoin Investment Solution

Litecoin Price Weekly Analysis – Signs of More Bears




Litecoin price traded near $3.40 this past week. However, it found resistance near the stated level and now looks set for a decline. Intraday Support Level can be $3.22. Intraday Resistance Level may be $3.40.
Litecoin Price Weekly Analysis
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Key Highlights

  • Litecoin price managed to recover a few points this past week, but failed to sustain gains and traded back lower.
  • There is a bearish trend line formed on the 4-hours (data feed via Kraken), which acted as a resistance for the price.
  • The price also struggled to clear the 100 simple moving average on the 4-hours chart that pushed the price down.

Litecoin price traded near $3.40 this past week. However, it found resistance near the stated level and now looks set for a decline.

Litecoin Price – Sell Near 100 SMA?

Litecoin price after trading as low as $3.10 found support and recovered a few points to trade near $3.40 where it found bears. There is a bearish trend line formed on the 4-hours (data feed via Kraken), which acted as a hurdle for more upsides and prevented gains around $3.40.

There was a lot of selling pressure noted around $3.40 since the 61.8% Fib retracement level of the last drop from the $3.58 high to $3.11 low was also positioned around the stated level. The price moved down, and also closed below the 100 simple moving average on the 4-hours chart, which is a negative sign for the bulls.

Litecoin Price Weekly Analysis

If the bears remain in control, then there is a chance of more losses in the near term that could take the price back towards the $3.10 level. On the upside, a break above the trend line resistance could take the price towards the 76.4% Fib retracement level of the last drop from the $3.58 high to $3.11 low.

Looking at the indicators:

4-hours MACD – The MACD is in the bearish zone, and pointing towards more losses in the near term.

4-hours RSI – The RSI is just above the 50 level, which may give the bulls a reason to attempt an upside move.

Intraday Support Level– $3.22

Intraday Resistance Level – $3.40

 

Charts from Kraken; 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.

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