Key Highlights
- Litecoin price slowly and steadily moving higher against the US Dollar, and testing a major resistance area at $3.50.
- There is a resistance trend line formed on the hourly chart with data feed from Bitfinex, which is acting as a hurdle for more gains.
- A break above the $3.50 level may call for a move towards the $3.60-65 levels in the short term.
Litecoin price is trading higher, but there is no doubt that it is losing momentum against the US dollar in the near term.
Sell Near Trend Line Resistance?
Litecoin price after dipping close to the $3.30 support area found buyers, and slowly started to grind higher. The price is now trading towards an important resistance area at $3.50 and facing sellers. There is a resistance trend line formed on the hourly chart (data feed from Bitfinex), which acted as a barrier for more upsides previously and may continue to stall gains.
The $3.50 holds the key for Litecoin price in the short term, and as long as the price is below it there is a chance of a minor correction. On the downside, an initial support can be around the 38.2% Fib retracement level of the last leg from the $3.34 low to $3.49 high. A break below the same may call for more losses that could take the price towards the 61.8% Fib retracement level of the last leg from the $3.34 low to $3.49 high.
Buyers need to keep an eye on the 100 hourly simple moving average on the downside, which may act as a buy zone.
Looking at the indicators:
Hourly MACD – The MACD is in the bearish zone, which is not a good sign for the bulls.
Hourly RSI – The RSI is just below the 50 level, calling for a downside move in the short term.
Intraday Support Level (HitBTC) – $3.42
Intraday Resistance Level (HitBTC) – $3.50
Charts from Bitfinex; hosted by Trading View
