- Litecoin price held the ground as highlighted in the previous week’s analysis that the $2.40 support area holds the key.
- A bearish trend line formed on the 4-hours chart of the Litecoin price was breached to open the doors for more gains in the near term.
Litecoin price has managed to break a major resistance area, which might ignite an upside rally moving ahead.
Retest of $3.80?
The Litecoin price found support around $2.40, which acted as a major hurdle for sellers and prevented more losses. There was an upside move recently, as the price managed to break the 23.6% Fib retracement level of the last drop from the $4.00 high to $2.40 low is possible. The most important point was the fact that the price also breached a bearish trend line formed on the 4-hours chart. This was not all, as buyers also managed to push the price above the 100 simple moving average (4H). In short, there are many bullish signs on the 4-hours chart, highlighting that the price could trade higher moving ahead.
The next hurdle for buyers could be around the 50% Fib retracement level, as currently the price is struggling to clear the 38.2% Fib level. On the other hand, if sellers take the price lower, then the 100 SMA might act as a support. A break below it might take the price towards the broken trend line, which could act as a support moving ahead.
Any further losses might be a negative sign, which could push the price towards the last swing low of $2.40 where buyers may appear to prevent losses.
Intraday Support Level – $2.75
Intraday Resistance Level – $3.50
The hourly RSI and MACD are in the bullish zone, which suggests that more gains are likely.
Charts courtesy of Trading View