Key Highlights
- Litecoin price after dropping day before yesterday managed to gain bids and attempted a recovery.
- It is facing a lot of hurdles on the way up, starting with the 100 hourly simple moving average (data feed from Bitfinex).
- There is an expanding triangle formed on the 2-hours chart (data feed from Bitfinex), which is likely to act as a catalyst in the near term.
Litecoin price is currently attempting a recovery after facing a lot of selling pressure, but it may find sellers again on the upside around $3.50-52.
Sell Near 100 MA?
Litecoin price made a minor new low yesterday to trade as low as $3.369 where it found bids, and started correcting higher. There are a couple of bullish candles formed on the hourly chart (data feed from Bitfinex), highlighting that buyers are making an attempt to take the price back higher. However, it won’t be easy for them to take the price back higher, as there are many barriers aligned on the way up for them. An initial resistance is around the 61.8% Fib retracement level of the last drop from the $3.64 high to $3.36 low.
However, the most important resistance is near the 100 hourly simple moving average (data feed from Bitfinex), as it is coinciding with a major bearish trend line. We must note that the same trend line acted as a sell zone and ignited a downside reaction many times before. So, there is a high probability that sellers may appear once again around the highlighted trend line and resistance area. Moreover, the 76.4% Fib retracement level of the last drop from the $3.64 high to $3.36 low is also coinciding with the 100 MA to act as a solid barrier for buyers for an upside move.
Let us see a reaction around the highlighted trend line and resistance area. If somehow buyers manage to break it, then it might open the doors for more gains. The next level of interest in that situation could be around the $3.60 pivot area. There is no denial that there are a few indicators suggesting an upside move in the short term, but buyers need to watch out near the 100 MA and the bearish trend line. The 2-hours chart with the data feed from HitBTC is pointing towards the fact that sellers are in control.
The last few candles were bearish and there was no sign of buyers. There is an expanding triangle formed on the 2-hours chart, which is supporting the price as of writing. There is a kind of similar situation on the 2-hours chart, as the 100 simple moving average is stalling gains and acting as a resistance. The best part is the 100 MA is positioned with the 61.8% Fib retracement level of the last drop from the $3.659 high to $3.50 low.
Overall, one may consider selling near the highlighted trend line and resistance area on the hourly chart (data feed from Bitfinex).
Looking at the indicators:
2-hours MACD – The MACD looks like changing slope from bearish to bullish, but we need more signs of bulls.
2-hours RSI – The RSI is below the 50 level, which is a bearish sign.
Intraday Support Level – $3.45
Intraday Resistance Level – $3.55
Charts from Bitfinex and HitBTC; hosted by Trading View
