Key Highlights
- Litecoin price recovered this past week after a bad streak, and if buyers gain control there is a chance of further upsides.
- The price is placed well above the 100 simple moving average on the 4-hours chart (data feed via Bitfinex), suggesting sellers struggled to keep the price down.
- There is a minor bearish trend line formed on the H4 chart, which if broken may take the price higher.
Litecoin price after finding bids near the $3.30 level traded higher. If buyers break the highlighted trend line then a move towards $4.0 is possible.
Litecoin Price – Buy with a break?
Litecoin price found bids this past week, and every downside move found buyers. There was a strong support formed near $3.30, which acted as a barrier for sellers. The price is currently trading higher and looking for a break higher. There is a bearish trend line formed on the 4-hours chart (data feed via Bitfinex), which is currently acting as a hurdle for more gains.
A critical point to note here is that the trend line is near the 50% Fib retracement level of the last wave from the $3.58 high to $3.30 low. The RSI is well above the 50 level, calling for more gains. A break above the trend line and resistance area could take the price towards the 76.4% Fib retracement level of the last wave from the $3.58 high to $3.30 low. The price may even head towards the $3.60 level if sellers step back.
On the downside, an initial support can be around the $3.40 level, followed by the most important area at $3.30.
Looking at the indicators:
4-hours MACD – The MACD is in the bullish zone, which is a positive sign for the bulls.
4-hours RSI – The RSI is above the 50 level, suggesting buyers are in control.
Intraday Support Level– $3.30
Intraday Resistance Level – $3.45
Charts from Bitfinex; hosted by Trading View
