- Litecoin price looks like trading in a range against the US Dollar with resistance near $3.32 and support at $3.18.
- There is a short-term bearish trend line formed on the 4-hours (data feed via Bitfinex), which may continue to act as a resistance.
- A break above the range resistance area may take the price towards the $3.45-3.50 levels.
Litecoin price after trading near $3.00 recovered well. If the buyers manage to break the highlighted trend line and resistance area, then more upsides are likely.
Litecoin Price – Buy with a Break?
Litecoin price after diving towards the $3.00 support area against the US dollar moved back higher. It looks like a short-term range is forming of $3.18-$3.32, as the price found bids time and again around $3.18 and offers near $3.32. However, there are a few positive signs to look, as the price is above the 100 simple moving average (4-hours chart, data feed via Bitfinex).
Moreover, the price also broke the 50% Fib retracement level of the last drop from the $3.33 high to $3.16 low. However, there is a short-term bearish trend line formed on the 4-hours (data feed via Bitfinex), which is currently acting as a hurdle for the bulls. If they manage to clear it, then the range resistance area of $3.32 may be tested. Any further gains could take the price towards the $3.45 levels.
If you are looking to buy with a break above the trend line resistance area, then a stop should a close below the 100 SMA (H4 chart).
Looking at the indicators:
4-hours MACD – The MACD is in the bullish slope, but there is no real momentum, which is a warning sign in the short term.
4-hours RSI – The RSI is above the 50 level, which may encourage the bulls to gain momentum and take the price higher.
Intraday Support Level– $3.24
Intraday Resistance Level – $3.32
Charts from Bitfinex; hosted by Trading View