Litecoin Price Weekly Analysis – Buyers Beware

Key Highlights

  • Litecoin price after attempting a correction failed, and currently heading lower.
  • The price breached a monster support area, which is signaling towards more declines ahead.

Litecoin price clearing a critical support area is a warning sign to buyers and could ignite a downside move.

Litecoin price solid run towards the upside failed around $8.98, as it traded lower. The downside was stalled around $3.24. It was a monster decline, as pointed in the previous weekly analysis. However, buyers made an attempt to take the price higher, but the upside was stalled just below the 38.2% Fib retracement level of the last drop from $8.98 to $3.24.

Trend Change

There was a bullish trend line formed on the 4-hours chart of Litecoin price chart, which was breached by sellers after the price failed around $5.50. If this turns out to be a real break, then we might witness a down-move in the near term. The price has just settled below the 100 simple moving average, which is a negative sign and could increase the bearish pressure. We need to see whether sellers manage to gather pace, as there are many signals for more losses moving ahead.

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On the downside, the most important support lies around the last swing low of $3.24 where buyers could appear to defend losses if the price moves lower. A break below it might be a very critical move.

On the upside, the 100 SMA might act as a resistance, followed by the broken trend line. If buyers manage to gain control, then it could negate the bearish view. There is a monster resistance formed around $5.50, which holds the key moving ahead.

Intraday Support Level – $3.24

Intraday Resistance Level – $5.50

The H4 RSI is around the oversold readings, which is pointing towards a short-term correction.

 

Charts courtesy of Trading View

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