Key Highlights
- Litecoin price blasted higher this past week to trade near $3.82 where the upside was stalled.
- It looks like the stated area is turning out to be a major resistance area and may ignite a reversal in the near term.
- A contracting triangle pattern is formed on the hourly chart (price feed from HitBTC), which looks set for a break lower.
Litecoin price may break down and reverse all the recent gains, as buyers are struggling to clear the $3.80 resistance area.
$3.58 as Support
We highlighted in one of the past week’s analyses that there was a nice upside reaction in Litecoin price as buyers managed to break the shackles and took the price higher. The upside was stopped near $3.83, and thereafter the price started to consolidate in a range. However, it looks like the price is struggling and forming a downside bias in the near term. There is a contracting triangle pattern formed on the hourly chart (price feed from HitBTC), which can be also seen as a pattern that can ignite a break lower.
There were many attempts to break the triangle support area, but buyers managed to prevent the break. The 38.2% Fib retracement level of the last leg from the $3.20 low to $3.83 high is aligned with the triangle support area. So, a break below it may call for a trend reversal and might take the price lower. The next area of interest in that case could be around the 50% Fib retracement level of the last leg from the $3.20 low to $3.83 high, which is also aligned with the 100 hourly simple moving average (MA).
The price for Litecoin price via the data feed from Bitfinex looks a bit different. There are less bearish signs, but the matter of the fact remains the same. The price is now below the 100 hourly simple moving average on the 30-mins chart, which is a bearish sign and speaks volume about the current short-term trend.
A break below the $3.52 support area might call for a downside move in the near term.
Looking at the indicators:
MACD – The hourly MACD is in the bearish slope and favoring more losses.
RSI – The hourly RSI is below the 50 level, and signaling a downside break in the short term.
On the upside, the recent high of $3.83 holds the key for a move towards $4.00.
Intraday Support Level – $3.58
Intraday Resistance Level – $3.82
Charts from Bitfinex and HitBTC; hosted by Trading View
