Litecoin Price Weekly Analysis – Continuous Downsides Likely

Litecoin Price Weekly Analysis

Key Highlights

  • Litecoin price every attempt to trade higher failed as it found sellers for another downside ride.
  • There was a bullish trend line formed on the 4-hours (data feed via Kraken), which was broken to open the doors for more losses.
  • The price is now well below the 100 simple moving average on the 4-hours chart, which can be seen as a resistance if the price recovers.

Litecoin price dropped close to the $3.0 level recently. It looks like the price is set for more losses if the bears remain in control.

Litecoin Price – Continue Selling?

Litecoin price this past week failed to hold the bullish momentum and dropped. My idea of short played well and I think if u entered then there were nice profits to book. There was a bullish trend line formed on the 4-hours (data feed via Kraken), which was broken to ignite the downside move.

The price traded as low as $3.01 where there were bids protecting more losses. The price started a short-term recovery after testing the stated level. It is currently trading near the 38.2% Fib retracement level of the last drop from the $3.40 high to $3.01 low. Let us see whether it can gain traction or not moving ahead. The price is well below the 100 simple moving average on the 4-hours chart, which can act as a major barrier if the price moves higher from the current levels.

Litecoin Price Weekly Analysis

Moreover, the 50% Fib retracement level of the last drop from the $3.40 high to $3.01 low can also stall the upside move. On the downside, the $3.0 handle remains a major support area.

Looking at the indicators:

4-hours MACD – The MACD is strongly in the bearish zone, suggesting the bears are in control.

4-hours RSI – The RSI is around the oversold levels, which may ignite a minor recovery this upcoming week.

Intraday Support Level– $3.00

Intraday Resistance Level – $3.20

 

Charts from Kraken; hosted by Trading View

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.


Subscribe to our newsletter



Related Posts