Key Highlights
- As highlighted during the last week’s analysis, Litecoin enjoyed a monstrous rally and currently consolidating gains.
- There is a chance of one more spike higher, but in that situation, it would be interesting to see how sellers react.
Litecoin recent surge higher towards the $2.00 level was very impressive, but the price was just shy of the mentioned level and traded as high as $1.94. Currently, the price is consolidating and setting up for the next move. The Bollinger bands are shrinking and pointing that the price might move in a range after the mentioned monstrous rally.
The price has already moved below the 23.6% Fib retracement level of the last wave from the $1.44 low to $1.94 high, which means there is a possibility of more downsides as a part of the correction. The Lower Bollinger band is providing support to Litecoin and may perhaps continue to protect losses. However, there is a risk of a break lower towards the next possible support at 38.2% Fib level.
Swing Area – $1.70-60
There is a critical support forming around the 50% and 61.8% Fib retracement level, which is also sitting around the 100 simple moving average (4H). There are a few important signs, pointing that there can be a break lower to test the 50% Fib level. First, the 4H RSI has moved below the 50 level, and second that the MACD is shaping up towards the bearish slope.
Intraday Support Level – $1.75
Intraday Resistance Level – $1.85
The current ranging move is very critical, as the next leg after consolidation might play a big role. We must not forget that the $1.50 level remains a major support and as long as the price stays above the same, the trend is up. So, any pullback from the current levels might be seen as a buying opportunity in the near term.
Charts courtesy of Trading View
