- 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 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.
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