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Litecoin price continued rallying today to print a high of around $2.14 a couple of hours before writing this analysis. Although the price rose to test the 23.5% Fibonacci retracement level at $2.12 today, the following hours will decide whether or not litecoin price will manage to break through this essential resistance level.
By studying the 4 hour Bitfinex (LTC/USD) chart from tradingview.com, plotting the William’s Alligator indicator and drawing Fibonacci retracement levels along a trend line that extends between the low reached on the 14th of January at around $1.10 and the high reached on the 26th of Jamuary at $2.44 (look at the below chart), we can notice the following:
– Litecoin price rose yesterday from around $1.9 to $2.14 earlier today, before price correction pulled the price down to $2.02 at the time of writing of this article.
– The 23.6% Fibonacci retracement level at $2.12 resisted an increase in litecoin price. It seems that the price will rise to test this level again, however, it is unlikely to see this resistance broken within the next 24 hours.
– The SMAs of the William’s Alligator indicator are exhibiting a bullish alignment, so we expect the price rise to test the $2.12 resistance level again.
By studying the 1 day Bitfinex (LTC/USD) chart from tradingview.com, plotting the 20, 50 and 100 day EMAs and calculating the RSI and MACD indicator accordingly (look at the below chart), we can conclude the following:
– Litecoin price is now above the 20, 50 and 100 day EMAs which points to the current bullish trend.
– The MACD indicator has entered the positive territory and the blue MACD line is now above the red signal line so we can expect litecoin price to rise towards $2.12 again.
– The RSI value is around 64 so litecoin is not overbought and we can still see it rise.
Conclusion:
Litecoin price rose to a high of $2.14 earlier today. Our technical analysis predicts price to rise to test the $2.14 again within the next 24 hours.
Charts from bitfinex
