- Litecoin price after trading close to $9.00 found sellers that ignited a downside movement.
- The price managed to clear a major resistance area, which is likely to push the price higher.
Litecoin price looks like completed a short-term correction, which could ignite an uptrend one more time.
Litecoin price failed horribly around $9, which caused a heavy downside reaction. The price trimmed more than 40% gains to trade as low as $3.24. Buyers somehow managed to hold the downside around the stated area.
There is a bearish trend line formed on the 4-hours chart, which was breached by buyers to set the price for more gains. However, there is one more monster resistance building around 100 simple moving average (4H), which is coinciding with the Upper Bollinger Band. Moreover, the 23.6% Fib retracement level of the last drop from $8.98 to $3.24 is also positioned around the 100 SMA. In short, there is a crucial barrier formed around $4.60, which could stall the upside moving ahead.
If there is a break above $4.60, the price might head towards the next selling interest area of 38.2% Fib level. Any further gains might face sellers around the 50% Fib level. The chances of more upsides are less, as there lies a possibility of sellers appearing if the price heads higher.
On the downside, the last low of $3.24 might act as a support in the short term. If there is a break below the stated level, then it might call for more losses. Let us see how the price trades moving ahead as the 100 SMA remains a key swing area.
Intraday Support Level – $3.24
Intraday Resistance Level – $4.60
The H4 RSI is below the 50 level, which is a bearish sign in the near term.
Charts courtesy of Trading View