- Litecoin enjoyed a monstrous rally as highlighted in the previous analysis.
- Prices surged higher and traded as high as $1.94 where sellers defended more upsides.
Litecoin spiked sharply higher this past week to increase by more than 15%. There was a major range formed on the 4-hours chart before the price rushed higher. The $1.50 level was an important barrier for buyers, which was breached to open the doors for a rally as Litecoin steamed towards $1.90-$2.00. The bulls have completely outpaced the bears and managed to push prices within a span of a single day.
Currently, the price is correcting lower, and also managed to clear the 23.6% Fib retracement level of the last wave from the $1.44 low to $1.94 high. Litecoin approached the 38.2% Fib level where there was a reaction and buyers held the downside.
We cannot deny that there is a chance of Litecoin testing the 50% Fib retracement level of the recent rally as it is over expensive in the short term and sellers have enough reasons to push prices lower.
50% Fib as a Support
Sellers might face a lot of hurdles around the 50% Fib level, as it represents a major swing area. If buyers manage to take prices higher one more time, then March 2015 high might be tested in the near term. The most important resistance lies around $2.00, where sellers are expected to defend gains.
Intraday Support Level – $1.69
Intraday Resistance Level – $1.85
Almost every technical indicator is in the overbought territory, which means Litecoin might correct further moving ahead. The 100 simple moving average is around the lower levels, and could act as a magnet for a retracement.
Let us see how prices trade in the coming days and whether buyers manage to take Litecoin towards $2.0 or not.
Charts courtesy of Trading View