- The Litecoin price declined recently and broke an important triangle pattern formed on the hourly chart (data feed from Bitfinex).
- The price also settled below the 100 hourly simple moving average (MA), which is a bearish sign.
- The broken support area at $3.20-30 may now act as a resistance for buyers moving ahead.
Litecoin price broke a critical support area to ignite a bearish wave that might continue in the near term.
$3.20-30 as Sell Zone?
The Litecoin price formed a contracting triangle (price feed from Bitfinex), which was broken by sellers recently to clear the way for more downsides in the near term. The most important point is the fact that the price is now trading below the 100 hourly simple moving average (MA), which means there is a chance of more losses.
The price is currently trading near the 61.8% Fib retracement level of the last move from the $2.90 low to $3.21 high. There is a chance that the price might correct a few points higher from the current levels, but in that situation, it may find resistance around $3.20-30. The broken support area and the 100 hourly MA might act as a hurdle for more gains moving ahead.
The price feed from HitBTC suggests that the price was trading in a range, which was broken and the price moved lower. The range support area at $3.29 could now act as a barrier in the near term.
Looking at the indicators:
MACD – The hourly MACD is about to change the slope to bullish, which is a signal of a minor upside move that can be seen as a correction.
RSI – The hourly RSI is below the 50 level, which is a signal of sellers in action.
Intraday Support Level – $3.00
Intraday Resistance Level – $3.30
Overall, any correction from the current levels may find sellers near $3.20-30.
Charts from Bitfinex and HitBTC; hosted by Trading View