Litecoin Price Technical Analysis for 10/12/2015 – Downside Thrust Before Higher?

Key Highlights

  • Litecoin prices remained bullish, and traded higher back towards the last swing high of $3.80-$3.85.
  • There is a crucial trend line and support area formed on the hourly chart (data feed from Bitfinex), which may be considered a buy zone.
  • However, for an upside move, buyers have to clear the $3.80-$3.85, or else there lies a risk of a downside break.

Litecoin’s price is likely approaching a short-term break. As long as the price is above the 100-hour moving average, buyers remain in control.

Downside Push Ahead?

Litecoin Price Technical Analysis Litecoin Price Technical Analysis

Litecoin prices spiked intraday, as there was a sharp reaction around yesterday’s highlighted bullish trend line on the hourly chart (data feed from Bitfinex). The most critical aspect is the fact that the 100-hour simple moving average is positioned with the highlighted trend line. The price is currently near the last high of $3.80-$3.85, which is acting as a resistance. A break above the same is needed for more gains, possibly towards $4.

There is a chance that the price will dive one more time to retest the trend line and support area before it climbs back higher. If we look at the 30-minute chart with the data feed from HitBTC, there is an ascending channel pattern forming.

Litecoin Price Technical Analysis Litecoin Price Technical Analysis

The channel resistance area is also around the $3.80-$3.85 resistance area. It looks like the 76.4% Fibonacci level of the last drop from the $3.92 high to the $3.65 low may act as a pivot area. Overall, we can wait for a break in the short term for the next leg.

Looking at the Indicators

30-minute MACD – The MACD is in the bullish zone, suggesting more gains moving ahead.

30-minute RSI – The RSI is moving away from the overbought levels, which is a sign of a minor correction.

Intraday Support Level – $3.65

Intraday Resistance Level – $3.80


Charts from Bitfinex and HitBTC; hosted by Trading View