Analysis

Litecoin Price Weekly Analysis – Further Gains Seem Likely

Aayush Jindal | February 21, 2016 | 6:00 am
Litecoin Price Weekly Analysis
Analysis

Litecoin Price Weekly Analysis – Further Gains Seem Likely

Aayush Jindal | February 21, 2016 | 6:00 am

Key Highlights

  • The Litecoin price, after struggling for a long time, finally managed to gain buyers and made a nice move higher.
  • The price closed successfully above 100 simple moving average on the 4-hours chart (data feed via Bitfinex), pointing towards buyer’s strength.
  • There is a significant support trend line formed on the H4 chart, which may be seen as a buy zone for the price.

Litecoin price climbed higher this past week and showed a lot of bullish signs. It looks like buying dips idea may work in the near term.

Litecoin Price – Buy Near Trend Line?

Litecoin price after trading near the $3.00 support area for a long time formed a base and started to move higher. The upside move was very strong, as the price cleared 100 simple moving average on the 4-hours chart (data feed via Bitfinex), and tested the $3.45-50 area. The last couple of H4 candles are very bullish, and pointing towards the fact that buyers are in control.

There is a support trend line formed on the H4 chart, which acted as a catalyst for an upside move, and if the price moves down from the current levels, then it can be seen as a buy area. An initial support on the downside is around the 23.6% Fib retracement level of the last wave from the $3.15 low to $3.44 high.

Litecoin Price Weekly Analysis

However, there lies a possibility of the extension of correction phase. So, the next support area where buyers may appear could be around the 50% Fib retracement level of the last wave from the $3.15 low to $3.44 high.

On the upside, a break above $3.50 may open the doors for a way towards $4.00.

Looking at the indicators:

4-hours MACD – The MACD is in the bullish zone, and suggesting more gains.

4-hours RSI – The RSI is around the overbought levels, calling for a short-term correction.

Intraday Support Level– $3.33

Intraday Resistance Level – $3.45

 

Charts from Bitfinex; hosted by Trading View

 

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