Key Highlights
- Litecoin prices struggled to gain bids intraday and moved a few points lower towards $3.60-$3.55.
- An important bullish trend line on the hourly chart (data feed from Bitfinex) prevented the downside and is currently acting as a support.
- On the upside, there is a major resistance formed near $3.78, which may act as a breakout zone in the short term.
Litecoin’s price is likely heading towards a break with a support on the downside at $3.55 and resistance on the upside at $3.78-$3.80.
Can Buyers Prevent a Break Lower?
Litecoin’s price moved lower intraday, as buyers failed to take it higher. However, a bullish trend line formed on the hourly chart (data feed from Bitfinex) acted as a barrier for sellers and stopped losses. The price traded as low as $3.57, and is currently making an attempt to climb back. Furthermore, the 100-hour moving average helped the price to hold the ground.
Now, there is another trend line formed on the upside, which is positioned with the 50% Fibonacci retracement level of the drop from the $3.80 high to $3.57 low point. So, if the price moves higher once again, there is a chance of it facing offers near $3.70-72. Only with a break above the trend line and resistance area could the price back towards $3.80.
No doubt, there is a breakout looming for the Litecoin price. If we look at the 30-min chart with data feed from HitBTC, there is a contracting triangle forming. A solid breakout resistance is forming near $3.78; if buyers manage to clear it, the price may head towards $3.90.
Looking at the Indicators
30-min MACD – The MACD changed the slope to bullish, which is a positive sign.
30-min RSI – The RSI is above the 50 level, pointing towards more gains and buyer strength.
Intraday Support Level – $3.65
Intraday Resistance Level – $3.78
Charts from Bitfinex and HitBTC; hosted by Trading View