25-06-2016
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Litecoin Price Weekly Analysis – Continuous Downsides Likely




Litecoin price dropped close to the $3.0 level recently. It looks like the price is set for more losses if the bears remain in control. Intraday Support Level can be $3.00. Intraday Resistance Level may be $3.20.
Litecoin Price Weekly Analysis
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Key Highlights

  • Litecoin price every attempt to trade higher failed as it found sellers for another downside ride.
  • There was a bullish trend line formed on the 4-hours (data feed via Kraken), which was broken to open the doors for more losses.
  • The price is now well below the 100 simple moving average on the 4-hours chart, which can be seen as a resistance if the price recovers.

Litecoin price dropped close to the $3.0 level recently. It looks like the price is set for more losses if the bears remain in control.

Litecoin Price – Continue Selling?

Litecoin price this past week failed to hold the bullish momentum and dropped. My idea of short played well and I think if u entered then there were nice profits to book. There was a bullish trend line formed on the 4-hours (data feed via Kraken), which was broken to ignite the downside move.

The price traded as low as $3.01 where there were bids protecting more losses. The price started a short-term recovery after testing the stated level. It is currently trading near the 38.2% Fib retracement level of the last drop from the $3.40 high to $3.01 low. Let us see whether it can gain traction or not moving ahead. The price is well below the 100 simple moving average on the 4-hours chart, which can act as a major barrier if the price moves higher from the current levels.

Litecoin Price Weekly Analysis

Moreover, the 50% Fib retracement level of the last drop from the $3.40 high to $3.01 low can also stall the upside move. On the downside, the $3.0 handle remains a major support area.

Looking at the indicators:

4-hours MACD – The MACD is strongly in the bearish zone, suggesting the bears are in control.

4-hours RSI – The RSI is around the oversold levels, which may ignite a minor recovery this upcoming week.

Intraday Support Level– $3.00

Intraday Resistance Level – $3.20

 

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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