- Litecoin price popped higher after trading towards $3.37 and currently heading near a major resistance area.
- There is a critical resistance confluence area forming around the 100 hourly simple moving average and a bearish trend line (data feed from Bitfinex).
- Overall, selling rallies can be considered near $3.55 as long as the price is below the 100 MA.
Litecoin price is approaching a monster barrier at $3.55 where there is a chance of sellers appearing and preventing any further gains.
Sell Near 100 MA?
Litecoin price after trading back lower found support near $3.35-40, and currently correcting higher. However, the price is heading towards a monster confluence resistance area. The 100 hourly simple moving average, a bearish trend line (data feed from Bitfinex) and the 50% Fib retracement level of the last drop from the $3.68 high to $3.37 low are positioned around $3.55.
So, we can say that there is a crucial hurdle building near $3.55-60 where sellers are likely to appear. The 100 MA is perfectly aligned to stall gains in the short term and prevent buyers from taking the price higher. Only a break and close above the 100 MA may open the doors for a move back towards the last swing high of $3.68. Otherwise, as long as the price is below 100 MA, we might consider selling around $3.55.
We can witness more bearish signs looking at the 2-hours chart (data feed from HitBTC). The 100 MA (2-hours) is also positioned just around $3.60, which adds to the value of highlighted trend line and resistance area.
Looking at the indicators:
Hourly MACD – The hourly MACD is in the bullish zone, which is a bullish sign.
Hourly RSI – The RSI is above the 50 level, pointing that buyers are in control as of now and may attempt to take the price above 100 MA (hourly).
Intraday Support Level – $3.45
Intraday Resistance Level – $3.55
Charts from Bitfinex and HitBTC; hosted by Trading View