Litecoin Weekly Analysis – An Upside Break Likely

Key Highlights

  • Litecoin continued to find support every time sellers managed to take prices lower.
  • An important support trend line is formed on the 4-hours chart of LTCUSD.

There is a major barrier for LTCUSD around the 1.50 level, which acted as a catalyst for sellers to take prices lower. However, there is a monster bullish trend line, which is providing support to Litecoin and if buyers gain control, it might take prices higher in the near term.

Currently, the price is constrained inside Bollinger bands, and forming a consolidation pattern. LTCUSD is waiting for a catalyst to break higher or lower. On the downside, the highlighted trend line holds the key for more losses and if sellers clear the same, then LTCUSD might test the 1.32 level.

Litecoin

Litecoin

Recently, the price spiked to test the trend line support and 61.8% Fib retracement level of the last wave from the 1.36 low to 1.50 high. Prices failed to settle below the mentioned support area, which suggests that buyers might succeed in taking LTCUSD higher in the short term.

100 SMA as a Support

There is one more encouraging thing to note for buyers, as the 100 simple moving average (SMA) – 4h is also acting as a barrier for sellers. It is aligned perfectly with the lower band of Bollinger bands. However, we cannot deny the fact that there are several hurdles on the upside. An immediate resistance is around 1.47, followed by the all-important 1.50 level, which is a major barrier for more gains in LTCUSD.

Intraday Support Level – 1.42

Intraday Resistance Level – 1.50

We need to see whether buyers can manage to take prices above the last swing high of 1.50 or not, as a break above the same might call for sharp gains moving ahead. On the downside, the bullish trend line might continue to act as a support.

 

Charts courtesy of Trading View

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