Litecoin Price Technical Analysis – Selling Best Option – The Basics about Cryptocurrency

  • Litecoin price tumbled once again and failed to capitalize on the previous week gains, as sellers stepped in to prevent upsides.
  • The price is now following a descending channel pattern on the 2-hours chart with data feed from HitBTC, which may play a major role in the short term.
  • There is a bearish trend line formed on the 30-min chart (data feed via Bitfinex), which can be seen as a sell zone.

Litecoin price stalled around the $3.30 area, and currently under a lot of bearish pressure that could result in a sharp downside move.

Sell Near Trend Line Resistance?

Litecoin price after trading as high as $3.20 (data feed via Bitfinex) found resistance and started to move down. There was a lot of selling pressure noted, which resulted in a continuous downside move. There is a bearish trend line formed on the 30-min chart (data feed via Bitfinex), as highlighted in this past week’s analysis. We sold a couple of times around the same trend line and were successful. The idea remains the same, and as long as the price is below the highlighted trend line and resistance area, we may continue to look for sell opportunities.

The bearish trend line is also coinciding perfectly with the 100 simple moving average, suggesting that the same trend line holds a lot of importance in the short term. Buyers may find it tough to clear it, as the 23.6% Fib retracement level of the last wave from the $3.18 high to $3.01 low is also around the trend line resistance area. If sellers fail to defend the highlighted trend line resistance zone, then we can even attempt a buy with a break. The next level of interest in that situation could be around the 50% Fib retracement level of the last wave from the $3.18 high to $3.01 low.

There are bearish signs on the higher time frame chart as well like the 2-hours chart with the data feed from HitBTC. The price traded around $3.30 where it found selling interest, and started to move down. There is a descending channel pattern formed, which is acting as a reason for a downside move. The price is now below the 100 simple moving average on the 2-hours chart (data feed via HitBTC), calling for more losses in the near term. If the price spikes towards the channel resistance trend line, then the stated 100 MA might also come into play to act as a barrier for sellers.

On the downside, an initial support can be around the 76.4% Fib retracement level of the last leg from the $3.03 low to $3.29 high. The most important one is the channel support trend line, which could play a major role for both sellers and buyers moving ahead. A break of channel pattern may take the price back towards the last swing low of $3.03. In that situation, the price might even trade towards the $3.00 handle.

Looking at the indicators:

2-hours MACD – The MACD just moved in the bullish zone, which is interesting considering the bearish pressure.

2-hours RSI – The RSI is below the 50 level, which is a contradicting sign with MACD.

Intraday Support Level (HitBTC) – $3.10

Intraday Resistance Level (HitBTC) – $3.18

Charts from Bitfinex and HitBTC; hosted by Trading View