Key Highlights
- Litecoin price after attempting a correction failed, and currently heading lower.
- The price breached a monster support area, which is signaling towards more declines ahead.
Litecoin price clearing a critical support area is a warning sign to buyers and could ignite a downside move.
Litecoin price solid run towards the upside failed around $8.98, as it traded lower. The downside was stalled around $3.24. It was a monster decline, as pointed in the previous weekly analysis. However, buyers made an attempt to take the price higher, but the upside was stalled just below the 38.2% Fib retracement level of the last drop from $8.98 to $3.24.
Trend Change
There was a bullish trend line formed on the 4-hours chart of Litecoin price chart, which was breached by sellers after the price failed around $5.50. If this turns out to be a real break, then we might witness a down-move in the near term. The price has just settled below the 100 simple moving average, which is a negative sign and could increase the bearish pressure. We need to see whether sellers manage to gather pace, as there are many signals for more losses moving ahead.
On the downside, the most important support lies around the last swing low of $3.24 where buyers could appear to defend losses if the price moves lower. A break below it might be a very critical move.
On the upside, the 100 SMA might act as a resistance, followed by the broken trend line. If buyers manage to gain control, then it could negate the bearish view. There is a monster resistance formed around $5.50, which holds the key moving ahead.
Intraday Support Level – $3.24
Intraday Resistance Level – $5.50
The H4 RSI is around the oversold readings, which is pointing towards a short-term correction.
Charts courtesy of Trading View
