- Litecoin price broke a major bearish trend line on the hourly chart (data feed from Bitfinex), and looks set for more upsides.
- The price is trading near a major support area of $3.50 where buyers are likely to take a stand.
- The price also broke an ascending channel formed on the hourly chart (data feed provided by HitBTC), as highlighted in yesterday’s post.
Litecoin price shows a lot of bullish signs, which means there is a chance of a move higher and buying dips may be a good option.
Broken Resistance and Support
Litecoin price finally managed to gain pace and traded higher. It broke a major bearish trend line on the hourly chart (data feed from Bitfinex), which was acting as a resistance for the price and now it is preventing the downside move. The 100 hourly simple moving average played well, and helped the buyers to take the price higher.
The price is trading near the broken resistance area, which is acting as a support now. It is also coinciding with the 50% Fib retracement level of the last wave from the $3.26 low to $3.84 high. In short, the current support area of $3.50-60 holds the key for an upside move. As long as the price is above it, there are chances of it trading higher.
Yesterday, we highlighted an ascending channel on the hourly chart (data feed from HitBTC), which was also cleared during the upside move. Almost all indicators are positive, and suggesting more gains in the near term.
Looking at the indicators:
MACD – The hourly MACD may change the slope to bullish soon, which may ignite an upside move.
Hourly RSI – The hourly RSI is below the 50 level, which is a sign that buyers are struggling to hold the ground.
Intraday Support Level – $3.50
Intraday Resistance Level – $3.80
Charts from Bitfinex and HitBTC; hosted by Trading View