- Litecoin price surged sharply higher Intraday and broke an important bearish trend line on the 4-hours chart (price feed from Bitfinex).
- The price managed to settle successfully above the $3.30-40 resistance area and rocketed higher.
- Buying dips may be a good idea moving ahead after the much needed bullish break.
Litecoin price climbed sharply during the past couple of sessions and broke all shackles. Now, can we look to buy dips?
Resistance Turned Support
Litecoin price after forming a base near $3.20-10 traded higher and even managed to clear a couple of important resistance levels. There was an important confluence resistance area of a bearish trend line and 100 simple moving average on the 2-hours chart (price feed from Bitfinex), which was broken during the upside drift.
The price traded as high as $3.59 where it is facing sellers. If it corrects a few points lower from the current levels, then an initial support on the downside can be around the 23.6% Fib retracement level of the last wave from the $3.08 low to $3.59 high. However, there is even a chance of a move towards the 38.2% Fib level of the same wave where we can consider buying.
As mentioned an important resistance area near $3.30 was broken (price feed provided by HitBTC), and it may now act as a monster support moving ahead. Moreover, the $3.40 is also a support area, i.e. the previous swing area as highlighted in the chart.
Looking at the indicators:
MACD – The hourly MACD is showing strong signs of bulls.
Hourly RSI – The hourly RSI is around the overbought levels, suggesting that a minor correction is possible in the short term.
Intraday Support Level – $3.40
Intraday Resistance Level – $3.60
Overall, we can look to enter a buy trade if the price corrects lower from the current levels.
Charts from Bitfinex and HitBTC; hosted by Trading View