Key Highlights
- Litecoin price showed a few signs of life this past week, but the upside move was limited as sellers remained active.
- There is a bearish trend line formed on the 30-min chart (data feed via Bitfinex) that may act as a resistance for buyers moving ahead.
- There is a positive for the bulls on the 2-hours chart with data feed from HitBTC, as a broken trend line is acting as a support area for the price.
Litecoin price looks like under a bearish pressure on the lower timeframe, but there remains a ray of hope on the 2-hours chart for the bulls.
Selling Rallies?
There was a bullish break noted for Litecoin price this past week, but it looks like the bulls failed to gain momentum. There was a downside move noted on the 30-mins chart (data feed via Bitfinex), as the price traded as low as $3.01. The stated level provided support, as it did in the past on many times. However, the question arises that how long the mentioned support area can hold? There are a few bearish signs emerging, as there is a bearish trend line formed on the 30-min chart (data feed via Bitfinex), which may act as a hurdle for the price if it moves higher from the current levels.
One key point to note here is the fact that the trend line is aligned with the 100 simple moving average, which increases its importance in the near term. An initial resistance on the upside is around the 38.2% Fib retracement level of the last drop from the $3.18 high to $3.01 low. However, the most important resistance is around the trend line and 100 MA, as it is aligned with the 50% Fib retracement level of the last drop from the $3.18 high to $3.01 low. So, if you are looking to play for a very short term, then consider selling near the 100 MA and the trend line resistance with a minor stop above the trend line.
On the flip side, if we look at the 2-hours chart with the data feed from HitBTC, there are a few positives to look for the bulls. Earlier, there was a bearish trend line and resistance area formed, which was cleared by buyers to open the doors for more gains in the near term. The same trend line is now acting as a support area for the price. A major aspect to note here is that that the 100 simple moving average on the 2-hours chart (data feed via HitBTC) is also positioned on the downside to act as a barrier for sellers.
There were already a couple of attempts to break the 100 MA support area, but buyers managed to defend it. It would be interesting to see whether buyers can push the price higher and how long the stated MA may hold during the upcoming week.
Looking at the indicators:
2-hours MACD – The MACD is in the bearish zone, but may change the slope to bullish moving ahead.
2-hours RSI – The RSI is above the 50 level, which is a positive sign for the bulls.
Major Support Level (HitBTC) – $3.10-05
Major Resistance Level (HitBTC) – $3.30
Charts from Bitfinex and HitBTC; hosted by Trading View
