- Litecoin price after climbing higher started to consolidate gains and mostly traded with a bullish tone.
- There is a bullish trend line formed on the hourly chart (price feed from HitBTC), i.e. acting as a buying zone in the short term.
- On the upside, a break above $3.70 could ignite another rally higher may be towards $4.00.
Litecoin price continued to strengthen after the recent surge, and it looks set for more gains as long as it stays above $3.50.
Trend Line Support
Litecoin price rocketed higher recently to trade near $3.83 where gains were stalled, and the price started consolidating. The price even corrected lower and tested the 38.2% Fib retracement level of the last wave from the $3.20 low to $3.83 high (price feed from HitBTC). Currently, there is a support trend line formed on the hourly chart, which is acting as a protector for the downside move and preventing losses.
The highlighted trend line and support area holds a lot of importance, as a break below it may extend the current correction phase. In that situation, the price might drop towards the next support area, which is at $3.50.
When we look at the price feed from Bitfinex, then we can analyze that buyers are very active at present. There was a slide in Litecoin price towards $3.50, but buyers appeared and pushed the price back higher. There was a nice bullish candle pattern formed as highlighted in the chart, suggesting that buying in the near term might be a good idea.
Looking at the indicators:
MACD – The hourly MACD is on the verge of changing the slope and signaling gains.
Hourly RSI – The hourly RSI is above the 50 level, and highlighting buyers’ strength.
Intraday Support Level – $3.50
Intraday Resistance Level – $3.70
Overall, we consider entering a buy trade near the trend line and support area.
Charts from Bitfinex and HitBTC; hosted by Trading View