- Litecoin price crashed this past week, and it looks like there can be more losses in the near term as sellers remain in control.
- In a recovery mode, there is a bullish trend line formed on the hourly chart (data feed from Bitfinex), which may be breached to ignite another bear rally.
- There is a flag pattern forming on the 2-hours chart (data feed from HitBTC), which may act as a catalyst for the next move.
Litecoin price is currently attempting a recovery, but it looks like it won’t be easy for buyers to take the price back up as sellers remain in charge.
Retest of $2.90?
Litecoin price suffered heavy losses this past week, as it traded down and test the $3.0 handle. There was even a break below the stated level, signaling that there is a lot of bearish pressure on the price. Looking at the hourly chart with the data feed from Bitfinex, the price traded as low as $2.90 before starting a recovery. The price managed to clear the 23.6% Fib retracement level of the last drop from the $3.51 high to $2.90 low. However, there was no real show of strength by buyers as they struggled to take the price above the $3.10 level.
The price failed just below the 38.2% Fib retracement level of the last drop from the $3.51 high to $2.90 low, and started to trade back lower. There is a bullish trend line formed on the hourly chart (data feed from Bitfinex), which acted as a minor support area for the price on the downside. However, it looks like the same trend line and support area is at risk, as sellers are attempting to take the price below it. If they succeed in breaking the trend line support area, then a retest of $2.90 low is possible in the near term. On the other hand, if buyers succeed in holding the price above the trend line, then there is a chance that the price may test the 38.2% Fib retracement level of the last drop from the $3.51 high to $2.90 low.
The 2-hours chart with the data feed from HitBTC also portraits a similar picture. The price attempted to trade and correct higher, but the upside was limited. Sellers managed to prevent a test and a break of the 38.2% Fib retracement level of the last drop from the $3.65 high to $2.99 low. However, there is no trend line formed on the 2-hours chart, but it looks like there is a flag pattern in making.
There are a lot of bearish signs on both the hourly chart and the 2-hours chart. So, it would be interesting to see whether the price can trade down once again and test the last low of $2.90 or not.
Looking at the indicators:
2-hours MACD – The MACD is about to change the slope to bearish, which is a bearish sign.
2-hours RSI – The RSI is below the 50 level, suggesting buyers are struggling to take the price higher.
Intraday Support Level (Bitfinex) – $3.00
Intraday Resistance Level (Bitfinex) – $3.10
Charts from Bitfinex and HitBTC; hosted by Trading View