- Litecoin price is facing a crucial resistance around the $3.55-60 area where sellers defended the upside more than five times.
- There is a major bearish trend line formed on the hourly chart with data feed from HitBTC, which is acting as a barrier for more gains.
- The price is now below the 100 simple moving average (H1), which another bearish sign.
Litecoin price continuously failed to trade above the $3.50-60 resistance area, suggesting that sellers are in control and may take it lower moving ahead.
Sell Near $3.55-60?
Litecoin’s price after trading as low as $3.46 managed to recover from losses, and corrected higher. However, there is a monster barrier formed near $3.55-60 for buyers, which is acting as a hurdle and preventing more gains. There is a confluence resistance area formed around the stated level. A bearish trend line on the hourly chart with data feed from HitBTC and the 38.2% Fib retracement level of the last drop from the $3.79 high to $3.46 low are positioned around $3.55-60.
Moreover, the 100 simple moving average (H1) is also just below the highlighted trendline and resistance area. The price has just moved below it, which is a sign that sellers are in control and may take the price further lower. On the downside, the most significant support is near the last swing low of $3.46 where buyers may take a stand. If buyers manage to take the price higher from the current levels, then a break above the trendline and resistance area could take the price towards the 50% Fib retracement level of the last drop from the $3.79 high to $3.46 low. However, it won’t be an easy task for buyers to break the $3.55-60 resistance area.
Looking at the lower time frame chart, there are a few positive signs. There is a bullish trend line formed on the 30-min chart via the data feed from Bitfinex, which is currently acting as a pivot area and pushing the price higher. The price is currently testing the 50% Fib retracement level of the last wave from the $3.37 low to $3.52 low. There is a difference if levels compare to data feeds from Bitfinex and HitBTC.
If the price trades closer to the highlighted trendline and support area (30M chart), there is a chance of it gaining traction. As long as the price is above it, there is hope that buyers may attempt to take the price higher. However, there is a bearish sign, as the price has moved below the 100 simple moving average (30-min chart via the data feed from Bitfinex).
Overall, the price is trading near crucial levels, both in terms of support and resistance. A break on either side could ignite the next move in the short term.
Looking at the indicators:
Hourly MACD – The MACD is in the bearish zone, suggesting more losses moving ahead.
Hourly RSI – The RSI is making an attempt to recover from the oversold level, but may struggle near the 50 area.
Intraday Support Level – $3.45
Intraday Resistance Level – $3.55
Charts from Bitfinex and HitBTC; hosted by Trading View