- Litecoin price spike down to test $3.35 where it found buyers for an upside move.
- A bearish trend line formed on the hourly chart (data feed from Bitfinex) was broken, which can be seen as an initial sign of a correction in the near term.
- The next stop for buyers may be around the 100 hourly simple moving average at $3.56.
Litecoin price looks like started a short-term recovery, and there is a chance of it moving higher if buyers gain momentum.
Trend line break
Litecoin price traded towards the $3.30 support area found support near $3.36, as buyers managed to defend the stated level successfully. There was a bearish trend line formed on the hourly chart (data feed from Bitfinex), which was cleared by buyers during the recent upside drift. The price also settled above the 23.6% Fib retracement level of the last drop from the $3.75 high to $3.36 low.
The next hurdle on the upside may be around the 50% Fib retracement level, as it is also positioned with the 100 hourly simple moving average. If the price moves lower from the current levels, then the broken trend line could act as a support area.
If we look at the 2-hours chart with the data feed from HitBTC, then there is a monster resistance near $3.60. The stated level acted as a support earlier and moving ahead may act as a resistance. It would be interesting to see how sellers react if the price reaches there. Overall, there are many positive signs, pointing more gains looking ahead.
Looking at the indicators:
Hourly MACD – The hourly MACD is in the bullish zone, suggesting an upside move.
Hourly RSI – The RSI is above the 50 level, which is another bullish sign.
Intraday Support Level – $3.45
Intraday Resistance Level – $3.60
Charts from Bitfinex and HitBTC; hosted by Trading View