- The Litecoin price climbed higher and broke an important resistance on the 4-hours chart (data feed from Bitfinex).
- The price is currently trading with a bullish tone, and it looks set for more gains in the near term.
- If buyers manage to clear the previous pivot area of $3.40, then a move towards $3.60 is possible.
Litecoin price enjoyed a decent ride, as buyers appeared on the downside to prevent losses and pushed the price higher above a major resistance area.
Is This a Real Break?
The Litecoin price after declining towards $2.90 formed a short-term bottom and managed to trade higher. There was a crucial bearish trend line formed on the 4-hours chart (price feed from Bitfinex), which was broken recently to open the doors for an upside move. If the recent break is valid, the price might head towards the 100 hourly simple moving average (MA).
An initial resistance on the 4-hours chart is around the 23.6% Fib retracement level of the last drop from the $5.38 high to $2.90 low, which is also around the 100 MA. Buyers may find it hard to break the stated fib level if the price moves higher from the current levels.
The price feed from HitBTC points that the current trading levels are very important. The main reason is that the $3.40 area acted as a major hurdle for buyers and the price is currently attempting to break it. A break above $3.40 could be another signal that buyers are here to stay.
Looking at the indicators:
MACD – The hourly MACD is showing a lot of positive signs for buyers.
RSI – The hourly RSI is around the overbought levels, suggesting that a minor correction is possible moving ahead.
Intraday Support Level – $3.30
Intraday Resistance Level – $3.40
In short, the highlighted break on the 4-hours chart is very critical and may take the price higher.
Charts from Bitfinex and HitBTC; hosted by Trading View