- Litecoin prices continued to move higher, and are likely heading towards the all-important $4 resistance area.
- There is a support trend line formed on the hourly chart (data feed from Bitfinex), which can be seen as a buy area.
- There is a monster channel formed on the 2-hour chart (data feed provided by HitBTC), which may act as a catalyst for the next move.
Litecoin’s price remains supported on dips, and there is a high probability that it may move towards $4 where sellers could prevent the upside.
Litecoin’s price gathered pace recently, as forecasted in yesterday’s post, and our idea of buying dips worked very well. There is now a bullish trend line formed on the hourly chart (data feed from Bitfinex), which is providing support to the price. It may continue to stall the downside move, and can be seen as a buying zone, as the 100-hour simple moving average is aligned just below it to act as a barrier.
Moreover, the 50% Fibonacci retracement level of the last wave from the $3.40 low to the $3.84 high is also on the downside around the highlighted trend line, a support area to help buyers. If there is a downside move, then $3.60 may prevent losses in the near term. On the upside is an initial resistance is around the recent high of $3.85, followed by the $4 handle.
Looking at the 2-hour chart of Litecoin prices with data feed from HitBTC, there is a major channel pattern forming. A break above the channel upper trend line may clear the way for a move towards $4.
Looking at the Indicators
2-hours MACD – The 2-hours MACD is in the bullish slope, signaling more gains.
2-hours RSI – The RSI is above the 50 level, which is another sign of bulls.
Intraday Support Level – $3.60
Intraday Resistance Level – $3.85
Charts from Bitfinex and HitBTC; hosted by Trading View