Litecoin Price Technical Analysis for 02/12/2015 – Sell Target Achieved

Key Highlights

  • Litecoin price fell sharply lower as our highlighted Double Top pattern on the hourly chart played well and pushed the price lower (data feed from Bitfinex).
  • The price broke a major support area near $3.50, suggesting more losses in the near term.
  • There might be a minor correction moving ahead as the hourly RSI is around the oversold readings.

Litecoin price was crushed Intraday, as sellers managed to gain control taking it below a critical support area of $3.50.

More Losses Ahead or Recovery in Litecoin Price?

Litecoin Price Technical AnalysisLitecoin Price Technical Analysis

Litecoin price fell sharply Intraday, and traded towards $3.30 support area after breaking $3.50. Our highlighted Double Top pattern on the hourly chart turned out to be a game changer and ignited a downside move (data feed from Bitfinex). Once the price cleared the 100 hourly simple moving average, the downside was swift. The price has now settled below a crucial support area of $3.50, which may act as a resistance if the price corrects higher from the current levels.

Let’s say the price attempts to recover from the current levels, then it may find offers near the 38.2% Fib level of the last drop from the $3.83 high to $3.36 low (data feed provided by HitBTC). There is also a bearish trend line on the hourly chart that could act as a barrier for the price if it gains traction.

Litecoin Price Technical AnalysisLitecoin Price Technical Analysis

The most important resistance on the upside is around the broken support of $3.50.

Looking at the indicators:

MACD – The hourly MACD is about to change the slope to bullish, which is a sign of a short-term correction.

Hourly RSI – The hourly RSI is below the 50 level, and calling for more losses in the near term.

Intraday Support Level – $3.30

Intraday Resistance Level – $3.50

 

Charts from Bitfinex and HitBTC; hosted by Trading View

 

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