- Litecoin’s price is struggling to gain momentum, and continued to probe an important bearish trend line on the hourly chart (data feed from Bitfinex).
- Only a break above the highlighted trend line and resistance area could ignite an upside move.
- On the positive side, there is a bullish trend line formed on the 2-hour chart (data feed from HitBTC), acting as a support.
Litecoin’s price is showing bearish signs if we look at the lower time frame chart, but it is bullish if we look at the 2-hour chart.
Buy with a Break?
Litecoin’s price looks like it’s struggling to gain traction and is currently facing a tough barrier around a bearish trend line on the hourly chart (data feed from Bitfinex). Currently, the price is flirting with the 100 hourly simple moving average. It acted as a support on a number of occasions, and if sellers manage to take the price below it, then more losses are possible.
On the upside, the trend line is also coinciding with the 50% Fibonacci retracement level of the last drop from the $3.84 high to the $3.55 low. A break and close above the highlighted trend line and resistance area could ignite a sharp move up.
Looking at the 2-hour chart with the data feed from HitBTC, there is a bullish trend line formed. This is not all, as the price is above the 100 hourly simple moving average, suggesting that buyers are here to stay. In short, there might be a minor down move, but as long as the support trend line on the 2-hour chart holds, more gains are likely.
Looking at the Indicators
2-hours MACD – The 2-hour Moving Average Convergence Divergence is about to change the slope to bullish, which may ignite an upside move.
2-hours RSI – The Relative Strength Index is just above the 50 level, which may encourage buyers.
Intraday Support Level – $3.60
Intraday Resistance Level – $3.70
Charts from Bitfinex and HitBTC; hosted by Trading View