- Litecoin price attempting to recover after declining sharply towards $3.35-30.
- There is a contracting triangle pattern formed on the hourly chart (data feed from HitBTC), which may ignite a short-term break moving ahead.
- The broken support area near $3.50-60 is likely to remain a major barrier for buyers if the price trades higher from the current levels.
Litecoin price current attempt to recover may face a lot of hurdles on the way, especially around the $3.50-60 resistance area.
Triangle Break in Litecoin Price?
It looks like that Litecoin price is under a correction phase that may extend for some time. The price moved higher towards the 38.2% Fib level of the last drop from the $3.83 high to $3.47 low (data feed provided by HitBTC) where it found sellers. There were a couple of attempts to break the stated fib level, but buyers failed to break it.
Currently, there is a contracting triangle pattern formed on the hourly chart, which may act as a catalyst for the next move. If there is a break higher, then a move towards the 50% Fib level is possible where sellers may take a stand. It won’t be easy to take the price higher for buyers, as the 100 hourly simple moving average is positioned above the current price and could act as a hurdle.
If we look at the hourly chart with data feed from Bitfinex, then it is quite clear that the $3.50-60 level is a major resistance zone. So, we may consider entering a sell trade near the stated level.
Looking at the indicators:
MACD – The hourly MACD moved to the bullish slope, which may encourage buyers moving ahead.
Hourly RSI – The hourly RSI is also above the 50 level, which is a positive sign.
Intraday Support Level – $3.30
Intraday Resistance Level – $3.50-60
Charts from Bitfinex and HitBTC; hosted by Trading View