- Litecoin price moved lower once again and tested the $3.0 handle as forecasted in yesterday’s post.
- There was a bearish trend line formed on the formed on the 30-min chart (data feed via Bitfinex), which acted as a sell area and ignited a downside move.
- A descending channel pattern formed on the 2-hours chart with data feed from HitBTC as highlighted yesterday is still in play.
Litecoin price struggled to move higher Intraday. There was a downside reaction, taking the price towards our sell target of $3.0.
Sell More?
Litecoin price moved a few points higher yesterday to trade near a bearish trend line formed on the 30-min chart (data feed via Bitfinex). I highlighted that we can plan on entering a sell trade near the highlighted trend line and resistance. It played well and if you entered a position, then it’s time to take profits, as our target of $3.0 was achieved. The price did move down and tested the all-important $3.0 level where buyers are putting their best efforts to save the price from more declines. The most disappointing and discouraging point is the fact that the price is below the 100 hourly simple moving average (data feed via Bitfinex).
If the price attempts to correct one more time, then we can again plan on entering a minor sell trade near the 100 MA and highlighted trend line and resistance. An initial resistance on the upside can be around the 23.6% Fib retracement level of the last drop from the $3.13 high to $3.00 low. Above it the 100 MA may come into play followed by the trend line resistance. We must note that the trend line break may change the bias in the short term, so out stop should be very tight. A break higher may take the price towards the 61.8% Fib retracement level of the last drop from the $3.13 high to $3.00 low.
If we look at the 2-hours chart with the data feed from HitBTC, then there is a descending channel pattern formed, as highlighted in yesterday’s post. The plotted channel pattern is perfectly acting as a catalyst for the price and taking it down slowly. There are many hurdles on the way up for the price, including the 100 simple moving average on the 2-hours chart (data feed via HitBTC). The stated MA is meeting the channel resistance area to increase its importance. So, if the price moves higher from the current levels, then we need to keep a close eye on the channel resistance trend line and the 100 MA.
Looking for a support on the downside? The most important one is around the 76.4% Fib retracement level of the last leg from the $3.03 low to $3.29 high. A break below it may call for a test of the channel support trend line, as it might play a key role moving ahead.
Looking at the indicators:
2-hours MACD – The MACD is in the bullish zone, which is a positive sign for the bulls for a change.
2-hours RSI – The RSI is just above the 50 level, which another positive sign.
Intraday Support Level (HitBTC) – $3.05
Intraday Resistance Level (HitBTC) – $3.16
Charts from Bitfinex and HitBTC; hosted by Trading View