Analysis

Litecoin Price Weekly Analysis – Signs of More Bears

Aayush Jindal | March 13, 2016 | 6:00 am
Litecoin Price Weekly Analysis
Analysis

Litecoin Price Weekly Analysis – Signs of More Bears

Aayush Jindal | March 13, 2016 | 6:00 am

Key Highlights

  • Litecoin price managed to recover a few points this past week, but failed to sustain gains and traded back lower.
  • There is a bearish trend line formed on the 4-hours (data feed via Kraken), which acted as a resistance for the price.
  • The price also struggled to clear the 100 simple moving average on the 4-hours chart that pushed the price down.

Litecoin price traded near $3.40 this past week. However, it found resistance near the stated level and now looks set for a decline.

Litecoin Price – Sell Near 100 SMA?

Litecoin price after trading as low as $3.10 found support and recovered a few points to trade near $3.40 where it found bears. There is a bearish trend line formed on the 4-hours (data feed via Kraken), which acted as a hurdle for more upsides and prevented gains around $3.40.

There was a lot of selling pressure noted around $3.40 since the 61.8% Fib retracement level of the last drop from the $3.58 high to $3.11 low was also positioned around the stated level. The price moved down, and also closed below the 100 simple moving average on the 4-hours chart, which is a negative sign for the bulls.

Litecoin Price Weekly Analysis

If the bears remain in control, then there is a chance of more losses in the near term that could take the price back towards the $3.10 level. On the upside, a break above the trend line resistance could take the price towards the 76.4% Fib retracement level of the last drop from the $3.58 high to $3.11 low.

Looking at the indicators:

4-hours MACD – The MACD is in the bearish zone, and pointing towards more losses in the near term.

4-hours RSI – The RSI is just above the 50 level, which may give the bulls a reason to attempt an upside move.

Intraday Support Level– $3.22

Intraday Resistance Level – $3.40

 

Charts from Kraken; hosted by Trading View

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