Key Highlights
- Litecoin price continued to struggle to clear the 100 simple moving average on the 2-hours chart (data feed from HitBTC).
- However, there are a few positive signs noted on the 30-min chart (data feed from Bitfinex), as there is an ascending channel formed.
- The price may trade a few points higher, as it is above the 100 MA (30-min chart).
Litecoin price struggle continues, but there are bullish signs emerging on the lower timeframe, which can be considered as an indicator of a move higher.
Ascending Channel as Catalyst
We highlighted a major hurdle for Litecoin price yesterday in the form of the 100 simple moving average on the 2-hours chart (data feed from HitBTC). It continued to stall gains and prevent the upside move. However, when we look at the lower timeframe like the 30-min chart via the data feed from Bitfinex, then there are a few bullish signs emerging.
First, there is an ascending channel formed on the 30-min chart, which is acting as a catalyst for the upside move. The price recently closed above the 100 MA successfully, which is a positive sign. So, there is a chance of it trading higher and test the channel resistance trend line. A break above the channel resistance area may call for more gains and ignite an upside move towards $3.65.
In order for any solid gains, we need to keep referring to the 100 MA on the 2-hours chart, as it may play a key role moving ahead. On the downside, the highlighted channel support area may prevent losses in the short term.
Looking at the indicators:
30-min MACD – The MACD is about to change the slope to bullish, pointing towards an up move.
30-min RSI – The RSI is just above the 50 level, and must hold if buyers have to take the price higher.
Intraday Support Level – $3.45
Intraday Resistance Level – $3.55
Charts from Bitfinex and HitBTC; hosted by Trading View
