Litecoin Price Technical Analysis – Next Leg Higher Underway

Key Highlights

  • Litecoin price surged higher and even managed to break an important resistance area of $3.50-60.
  • A perfect break can be easily noticed on the hourly chart (data feed from HitBTC) with support now at $3.60.
  • Buying dips may be a good idea in the short term, as the broken resistance area could act as a support moving ahead.

Litecoin price traded higher intraday, and our yesterday’s idea of buying with a break played well. Now we can look to buy dips in the short term.

Buy Dips?

Litecoin Price Technical Analysis Litecoin Price Technical Analysis

Litecoin price is currently trading in an uptrend on 1-hour chart, as there was a critical break that ignited a rally. A contracting consolidation pattern was formed, which was cleared by buyers to take the price higher. From a purely technical perspective, traders can anticipate a lot of buying activity every time the price trades back towards the broken triangle area.

The price action remains bullish above $3.80 and only profit taking may let the price move back to $3.50. Yesterday, we highlighted a range resistance area near $3.50, which was aligned with the 100 hourly simple moving average (data feed from Bitfinex) and the 23.6% Fib retracement level of the last drop from the $4.30 high to $3.50 low. The price managed to break the same and traded higher.

Litecoin Price Technical Analysis Litecoin Price Technical Analysis

There is a chance that the price may dip once to attract buyers before heading higher once again. On the upside, the next hurdle lies near the 50% Fib retracement level of the last drop from the $4.30 high to $3.50 low.

Looking at the indicators:

Hourly MACD – The hourly MACD is in the bullish zone, signaling more gains in the near term.

Hourly RSI – The RSI is around the overbought levels, calling for a minor correction.

Intraday Support Level – $3.60

Intraday Resistance Level – $3.80

 

Charts from Bitfinex and HitBTC; hosted by Trading View

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