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- 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.
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
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