- We were anticipating a break in the Litecoin price recently, which happened as the price traded below the last week pivot and created a new low.
- There is a lot of bearish pressure, suggesting that more losses are possible in the near term.
Litecoin price continued to trade lower, as the price failed to break and settle above the 100 hourly simple moving average.
The Litecoin price settled below an important support area of $3.00, which was a bearish sign. The mentioned level could act as a resistance if the price corrects higher in the near term. There was already an attempt to settle above the mentioned swing area and sellers defended it successfully. There was a new low formed around $2.41, which prevented gains.
Trend Line Resistance
There is a bearish trend line formed on the hourly chart of the Litecoin price, which is acting as a hurdle for buyers every time there is an upside move. Now, the same trend line is coinciding with the 38.2% Fib retracement level of the last drop from the $4 high to $2.41 low. The price is trading near the trend line resistance area, and it would be interesting to see whether there is a break upside or not. A break above the trend line could take the price towards the 50% Fib level. Any further gains may perhaps call for a test of the 100 SMA, which is a critical barrier for buyers.
On the downside, the last swing low of $2.41 is a major support area, and a break below it could be destructing for buyers. The next support area could be around $2.20 in that situation.
Intraday Support Level – $2.40
Intraday Resistance Level – $3.00
The MACD is making an attempt to move in the bullish area, which is a positive sign.
Charts courtesy of Trading View