Key Highlights
- Litecoin price once again gained traction and moved higher as buyers were seen active during this past week.
- There is a critical resistance formed around $1.90 where buyers might face a tough time.
Litecoin price once settled below the 100 simple moving, but later after buyers came into action, the price moved back above the same. The Bollinger Bands are nicely following a bullish path, which is a positive sign in the short term. The 50% Fib retracement level of the last drop from the $1.95 high to $1.50 was also breached, paving the way for more gains. Moreover, the 61.8% Fib level was also cleared, and the price closed the week around the 76.4% Fib level. The MACD is still in the bullish side, and suggesting more upsides towards $1.90 or even $1.95.
What favor sellers?
These were a couple of bullish signs. Now, let us have a look at the signs which favor sellers moving ahead. First, there is a resistance trend line formed on the 4H chart, which is right at the 88.6% Fib retracement level, and waiting to act as a barrier for buyers. So, if the price heads toward the $1.90 level, then there is a possibility of it finding sellers.
Second, the 4H RSI is around the overbought levels, pointing that there might be a correction if buyers lose control moving ahead. No doubt, buyers have the upper hand at the moment, but we cannot deny the fact that $1.90 may perhaps turn out to be a major resistance for them.
Intraday Support Level – $1.72
Intraday Resistance Level – $1.90
In short, we need to see how the price reacts once it reaches $1.90 on the upside. On the downside, the 100 4H SMA holds the key in the near term.
Charts courtesy of Trading View
