- After surging higher towards $4.30, Litecoin’s price found resistance and moved down sharply to trim all its gains.
- A support trend line on the hourly chart (price feed from Bitfinex) was also cleared during the downside drift.
- However, a bullish trend line on the 4-hour chart (data feed from HitBTC) is holding the downside and may ignite an upside move.
Litecoin’s price was crushed this past week after it gained momentum, but it looks like it won’t go down quietly and may bounce once again.
Trend Line Support on 4H
There was a nice ride in the Litecoin price this past week, as it traded close to $4.30, where it found offers. There was a sharp downside reaction taking the price below a bullish trend line on the hourly chart (price feed from Bitfinex). The price also settled below the 100 hourly simple moving average, which is a sign that bears managed to gain traction. The price traded as low as $3.49, where it found bids and is currently making an attempt to correct higher.
A major resistance on the upside is around the 100 hourly MA, coinciding with the 23.6% Fibonacci retracement level of the last drop from the $4.35 high to the $3.49 low.
On the other hand, the H4 chart with data feed from HitBTC shows good signs of the 100 MA providing cover for the bulls, as it has remained a reliable support level this far. There is also a support trend line, which remains a crucial area at the moment with new buying activity possible in the upcoming week. If the price manages to clear $3.80, a move towards $4.0 is possible.
Looking at the Indicators
4H MACD – The 4-hour MACD is in the bearish zone, which may be a warning sign for the bulls.
4H RSI – The 4-hour RSI is also below the 50 level, suggesting bears are in control.
Intraday Support Level – $3.50
Intraday Resistance Level – $3.80
Charts from Bitfinex and HitBTC; hosted by Trading View