- Litecoin price continued to move higher, and likely heading towards the all-important $4.00 resistance area.
- There is a support trend line formed on the hourly chart (data feed from Bitfinex), which can be seen as a buy area.
- There is a monster channel formed on the 2-hours chart (data feed provided by HitBTC), which may act as a catalyst for the next move.
Litecoin price remains supported on dips, and there is a high probability that it may move towards $4.0 where sellers could prevent the upside.
Litecoin price gathered pace recently, as forecasted in yesterday’s post and our idea of buying dips worked very well. There is now a bullish trend line formed on the hourly chart (data feed from Bitfinex), which is providing support to the price. It may continue to stall the downside move, and can be seen as a buying zone, as the 100 hourly simple moving average is aligned just below it to act as a barrier.
Moreover, the 50% Fib retracement level of the last wave from the $3.40 low to $3.84 high is also on the downside around the highlighted trend line and support area to help buyers. If there is a downside move, then $3.60 may prevent losses in the near term. On the upside, an initial resistance is around the recent high of $3.85, followed by the $4.0 handle.
Looking at the 2-hours chart of Litecoin price with data feed from HitBTC, there is a major channel pattern forming. A break above the channel upper trend line may clear the way for a move towards $4.0.
Looking at the indicators:
2-hours MACD – The 2-hours MACD is in the bullish slope, signaling more gains.
2-hours RSI – The RSI is above the 50 level, which is another sign of bulls.
Intraday Support Level – $3.60
Intraday Resistance Level – $3.85
Charts from Bitfinex and HitBTC; hosted by Trading View