- Litecoin price every attempt to trade higher failed as it found sellers for another downside ride.
- There was a bullish trend line formed on the 4-hours (data feed via Kraken), which was broken to open the doors for more losses.
- The price is now well below the 100 simple moving average on the 4-hours chart, which can be seen as a resistance if the price recovers.
Litecoin price dropped close to the $3.0 level recently. It looks like the price is set for more losses if the bears remain in control.
Litecoin Price – Continue Selling?
Litecoin price this past week failed to hold the bullish momentum and dropped. My idea of short played well and I think if u entered then there were nice profits to book. There was a bullish trend line formed on the 4-hours (data feed via Kraken), which was broken to ignite the downside move.
The price traded as low as $3.01 where there were bids protecting more losses. The price started a short-term recovery after testing the stated level. It is currently trading near the 38.2% Fib retracement level of the last drop from the $3.40 high to $3.01 low. Let us see whether it can gain traction or not moving ahead. The price is well below the 100 simple moving average on the 4-hours chart, which can act as a major barrier if the price moves higher from the current levels.
Moreover, the 50% Fib retracement level of the last drop from the $3.40 high to $3.01 low can also stall the upside move. On the downside, the $3.0 handle remains a major support area.
Looking at the indicators:
4-hours MACD – The MACD is strongly in the bearish zone, suggesting the bears are in control.
4-hours RSI – The RSI is around the oversold levels, which may ignite a minor recovery this upcoming week.
Intraday Support Level– $3.00
Intraday Resistance Level – $3.20
Charts from Kraken; hosted by Trading View