- The Litecoin price after declining heavily managed to find support near $2.90, and is currently correcting higher.
- A major bearish trend line on the hourly chart was breached (data feed from Bitfinex), suggesting more gains are likely in the short term.
- A possible inverse head and shoulders is forming, which if plays well might take the price higher.
Litecoin price is currently showing a lot of positive signs, and might trade higher towards the $3.50 resistance area moving ahead.
Test of $3.50?
The Litecoin price felt a lot of heat recently, as it moved lower and also traded below the $3.00 handle. The price fell as low as $2.960 where buyers appeared to prevent the downside. The price is correcting higher, and cleared a major bearish trend line on the hourly chart (price feed from Bitfinex). Moreover, the price also settled above the 100 hourly simple moving average (MA), suggesting that buyers had an upper hand recently.
There is a possibility of the price moving towards the 23.6% Fib retracement level of the last drop from the $5.39 high to $2.9 low where sellers might take a stand.
If we look at the price feed from HitBTC, then there is a possible inverse head and shoulders pattern forming on the hourly chart. It is not a perfect looking pattern, but it pointing towards the fact that buyers are in and might take the price higher.
Looking at the indicators:
MACD – The hourly MACD is currently flat, signaling a consolidation period.
RSI – The hourly RSI is placed comfortably above the 50 level, favoring more strength in the Litecoin price.
On the downside, the $3.00 handle may act as a support moving ahead.
Intraday Support Level – $3.00
Intraday Resistance Level – $3.50
In short, the price might head towards $3.50 where sellers might react to stall gains.
Charts from Bitfinex and HitBTC; hosted by Trading View