- Litecoin price is having a tough time in breaking a major trend line resistance area as highlighted in yesterday’s post.
- The 100 simple moving average on the 2-hours chart (data feed from HitBTC) is acting as a barrier for buyers.
- Only a break above $3.55 may call for more gains in the short term.
Litecoin price tested a major confluence resistance area and failed to break it. If buyers continue to struggle, there is a chance of a downside move.
A Break Possible?
Litecoin price moved a few points higher to trade near the 100 simple moving average on the 2-hours chart (data feed from HitBTC). However, sellers defended the 100 MA successfully and prevented the upside move. There were more than two attempts to break it, but buyers failed to take the price higher. If we look at the technical indicators, then there are a few bullish signs. The 2-hours MACD is in the bullish zone, and the RSI is above the 50 level suggesting that there is a chance of an upside break.
However, when we look at the hourly chart with the data feed from Bitfinex, then there is a crucial resistance building near $3.50-55. A bearish trend line along with the 100 hourly simple moving average is acting as a resistance and stalling gains. Moreover, the 50% Fib retracement level of the last drop from the $3.68 high to $3.37 is also playing its role perfectly.
Overall, there is a crucial resistance near $3.50-55, and only a break above it may call for an upside move that could lead the price towards $3.70.
Looking at the indicators:
Hourly MACD – The hourly MACD is almost flat, signaling a break in the near term.
Hourly RSI – The RSI is below the 50 level, which is a sign that buyers are losing control.
Intraday Support Level – $3.45
Intraday Resistance Level – $3.55
Charts from Bitfinex and HitBTC; hosted by Trading View