- Litecoin ended the week lower, but found support around an important area of 1.43.
- A crucial bullish trend line on the 4-hours chart is likely to provide support to LTCUSD.
There is a monster bullish trend line formed on the 4H chart of Litecoin, which recently acted as a barrier for sellers and pushed back prices higher. LTCUSD breached the 100 simple moving average (SMA) – 4H to trade above an important resistance around 1.47. However, it struggled at a critical pivot area of 1.50 and fell sharply after testing the mentioned resistance area.
The downside stalled at the 50% Fib retracement level of the last leg from the 1.36 low to 1.50 high. However, LTCUSD breached the 20 SMA i.e. the middle band of Bollinger bands. If it manages to close back above the same successfully in the short term, then buyers might gain control.
Importance of Trend Line
As mentioned, there is a solid bullish trend line, i.e. likely to provide support to LTCUSD if it moves below the 50% Fib level. The 4H RSI is just around the 50 level, suggesting the Litecoin price is at a crucial level. LTCUSD might trade a bit lower moving ahead, but could find support around the 100 SMA (4H) followed by the trend line.
The 4H MACD suggests that there is a slight bearish bias. If the market failed to take prices higher, it might test 1.41.
Intraday Support Level – 1.41
Intraday Resistance Level – 1.48-50
On the downside, the 61.8% Fib retracement level can be seen as an immediate support, which is just around the 100 SMA (4H). On the upside, 1.48 is a hurdle for LTCUSD, followed by the last swing high of 1.50.
Overall, buying in the short term around the bullish trend line might be a good idea as long as it stays above the same.
Charts courtesy of Trading View