- Litecoin’s price spiked higher intraday and even managed to break a critical bearish trend line on the hourly chart (data feed from Bitfinex).
- Our buy with a break idea as highlighted in yesterday’s post worked well.
- More gains are likely moving ahead, as the price may head towards the last swing high of $3.85.
Litecoin’s price traded higher and is currently positioned in the bullish zone. Once again, the buying dips idea may play well in the short term.
Continue Buying Dips?
Litecoin’s price was facing a major barrier in the form of a bearish trend line on the hourly chart (data feed from Bitfinex). However, buyers managed to take the price above the highlighted trend line and resistance area. Moreover, the price also closed above the 100 hourly simple moving average. The price traded as high as $3.78, and it looks set for a move towards the last swing high of $3.85.
If the price attempts to move lower from the current levels or corrects lower, then the 100 hourly MA may act as a support area in the short term. It is also positioned with the 38.2% Fibonacci retracement level of the last wave from the $3.55 low to $3.78 high. So, it won’t be easy for sellers to break it, and we can consider this area as buying zone.
Not to forget, the bullish trend line—as highlighted on the 2-hour chart with the data feed from HitBTC—is still intact. As long as the price is above it, more upsides are likely in the short term.
Looking at the Indicators
Hourly MACD – The hourly moving average convergence divergence is in the bullish slope, suggesting that buyers are here to stay.
2-hour RSI – The relative strength index is comfortably placed above the 50 level, which is a bullish sign.
Intraday support level – $3.70
Intraday resistance level – $3.85
Charts from Bitfinex and HitBTC; hosted by Trading View