Key Highlights
- The Litecoin price after declining close to $2.90 managed to find bids and corrected higher.
- There is a contracting triangle pattern forming on the hourly chart, which is likely to pave the way for more gains.
- The price is placed above the 100 hourly simple moving average (price feed from Bitfinex), which is a positive sign.
Litecoin price may move a bit higher from the current levels, but it might find sellers around an important pivot area of $3.80.
How important is $3.80 as a Resistance?
We mentioned in one of the previous analyses that the bulls appeared around $2.90 to prevent the downside and pushed the price higher. The price is currently moving higher, but it won’t be an easy ride for the buyers, as there are many hurdles on the way up, starting with the 23.6% Fib retracement level of the last fall from the $5.64 high to $2.99 low. However, the most critical resistance is around $3.80, which represents a major pivot area as highlighted in the chart.
When we look at the price feed from Bitfinex, then we can note a lot of positive signs. First, the price is above the 100 hourly simple moving average (MA). Second, there is a contracting triangle pattern forming on the hourly chart, which is likely to break moving ahead and open the doors for more gains.
Looking at the indicators:
MACD – The hourly MACD is mostly flat, suggesting a break is likely in the near term.
RSI – The hourly RSI is above the 50 level, pointing towards an upside move.
If the price moves lower, then the 100 MA may act as a support area.
Intraday Support Level – $3.15
Intraday Resistance Level – $3.80
In short, a break above the highlighted triangle may take the price higher moving ahead.
Charts from Bitfinex and HitBTC; hosted by Trading View
