Key Highlights
- Litecoin price continued to move lower, as there was a lot of bearish pressure and buyers struggled to take the price higher.
- There is a bearish trend line formed on the hourly chart, which is preventing gains in the near term.
Litecoin price traded lower and fell close to $2.40 before finding buyers to protect additional losses.
There was a sharp downside reaction this past week, as the price dived towards $2.40. However, there was a nasty reaction noted around the mentioned area, as buyers pushed the price higher. Now, there is a bearish trend line formed on the 4-hours chart, which is preventing gains in the near term. The price recovered and traded above the 23.6% Fib retracement level of the last drop from $3.70-$2.40.
100 SMA and 50% Fib Confluence
The price is currently struggling to clear the 38.2% Fib level, and there was a failure once around it. The bearish trend line and the Middle Bollinger Band is positioned around the stated fib level. However, the most important resistance is situated around the 50% Fib level, as it is positioned with the 100 simple moving average (4hours). So, if buyers manage to clear the trend line resistance area, then the next hurdle for buyers is around the $3.05 level. Any additional gains in that situation might be difficult, as there are no encouraging bullish sign on charts.
On the downside, the last swing low of $2.41 might continue to act as a support area. A break below it could take the price towards the all-important $2.00 area. The hourly RSI is below the 50 level, which is a bearish sign.
Intraday Support Level – $2.40
Intraday Resistance Level – $2.90
The MACD has started to move in the bullish zone, and might help buyers moving ahead.
Charts courtesy of Trading View