- Litecoin price is currently trading near a major support trend line on the hourly chart (price feed from Bitfinex), which may act as a catalyst for the next move.
- If sellers manage to take the price lower, a move towards $3.10 is possible in the short term.
- The hourly RSI (based on the price feed from HitBTC) settled below the 50 level, which is a bearish sign.
Litecoin price is trading near a crucial support area, which means it remains at a risk of a break lower moving ahead.
Move towards $3.10 is possible?
We highlighted yesterday that the $3.40 resistance area remains a concern for buyers and it may be possible that Litecoin price starts to move lower. There was a minor downside reaction, as the price moved lower and is currently trading near a major support trend line on the hourly chart (price feed from Bitfinex). The highlighted support area holds the key, as the 100 hourly simple moving average and the 38.2% Fib retracement level of the last leg from the $3.06 low to $3.268 high are aligned around it.
So, a break below the trend line and support area may increase the bearish pressure on Litecoin price. In that situation, the price might head towards the 61.8% Fib retracement level of the last leg from the $3.06 low to $3.268 high, which is at $3.13.
The price feed Bitfinex suggests a caution moving ahead, as the price is flirting with the 100 simple moving average (MA). If there is a convincing close below it, then sellers may take control.
Looking at the indicators:
MACD – The hourly MACD is pointing towards more losses in the short term.
RSI – The hourly RSI has moved below the 50 level, which is a warning sign for buyers.
Intraday Support Level – $3.15
Intraday Resistance Level – $3.30
In short, we can consider entering a sell trade if the price settles below the trend line and support area.
Charts from Bitfinex and HitBTC; hosted by Trading View