- Litecoin’s price—after collapsing towards $3.50—started to trade in a range, and is preparing for the next move.
- There is a monster support trend line formed on the 2-hour chart (data feed from HitBTC), which holds the key moving ahead.
- A break and close below $3.50 could ignite more losses and take the price towards $3.30.
Litecoin’s price is likely setting up for the next move, and it would be interesting to see whether buyers manage to defend the $3.50 support area or not.
Can Sellers Make it?
Litecoin prices fell sharply this week after trading as high as $4.30; the downside was stalled near $3.50 where buyers managed to hold the ground. Currently, the price is trading in a range and consolidating losses. A strong resistance is building near the 100-hour simple moving average (data feed from Bitfinex), as the 23.6% Fibonacci retracement level of the last drop from the $4.30 high to the $3.50 low is also positioned with it.
In short, a range resistance is formed near $3.65-70, which can be seen as a breakout zone. Similarly, on the downside, the recent low of $3.49 can be seen as a support. A break on either side may ignite the next rally in the near term.
When we look at the higher time frame, the 2-hour chart with data feed from HitBTC has formed a major support trend line. The highlighted trend line is protecting a downside break, but there lies a risk of a move lower. The price is below the 100-hour simple moving average, which is a sign that sellers have the upper hand at the moment.
Looking at the Indicators
2-hour MACD – The 2-hour Moving Average Convergence Divergence is in the bullish zone, which may encourage buyers for a move higher.
2-hour RSI – The Relative Strength Index is below the 50 level, suggesting sellers are in control.
Intraday Support Level – $3.50
Intraday Resistance Level – $3.70
Charts from Bitfinex and HitBTC; hosted by Trading View