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Litecoin Price Weekly Analysis

Litecoin Price Weekly Analysis – Facing Monster Hurdle

Avatar Aayush Jindal 4 years ago

Key Highlights

  • Litecoin price continued to move down this past week and traded as low as $3.00.
  • The price is currently trading higher, but facing a monster resistance near a bearish trend line formed on the 4-hours (data feed via Bitfinex).
  • As long as the price is below the $3.25-3.30 levels, there is a chance of a downside move in the short term.

Litecoin price recovered well after a major drop. However, the bulls have a job on their hand, as LTC/USD faces a major resistance areal.

Litecoin Price – Buy with a Break?

Litecoin price managed to trade higher against the US dollar and was mostly seen consolidating below a major resistance area of $3.25-30. There is a confluence area forming around the stated levels, as there is a bearish trend line on the 4-hours (data feed via Bitfinex) positioned. Moreover, the 61.8% Fib retracement level of the last drop from the $3.40 high to $3.00 low is also aligned near it to increase the importance of the resistance area.

The most important aspect is that the 100 simple moving average on the 4-hours chart is also around the same highlighted resistance confluence area. That is the reason why, there is a monster hurdle for the bulls near $3.25-30.

Litecoin Price Weekly Analysis

If the buyers succeed in breaking the highlighted resistance area, then a move towards the 88.6% Fib retracement level of the last drop from the $3.40 high to $3.00 low is possible. One may consider buying if the price settles above the 100 SMA (H4 chart) with a stop if the price moves back below it.

Looking at the indicators:

4-hours MACD – The MACD is almost flat, calling for a consolidation and then a break.

4-hours RSI – The RSI is above the 50 level, which can be considered as a positive sign for the bulls.

Intraday Support Level– $3.18

Intraday Resistance Level – $3.25

 

Charts from Bitfinex; 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...

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