- Litecoin price traded lower this past week as it failed to break an important resistance area of $3.40.
- A major support area of $3.30 was cleared by sellers, which is currently acting as a resistance (price feed from HitBTC).
- The 100 hourly simple moving average (price feed from Bitfinex) is also near the current levels, and preventing the upside move.
Litecoin price is forming an ascending channel pattern that may act as a catalyst for the next move in the near term.
Upside break likely?
Litecoin price recently broke a critical support area of $3.30, but somehow managed to find support around the previous swing area of $3.15. It is now correcting higher, and finding sellers near the broken support area of $3.30. The stated level is a monster resistance, as there is a bearish trend line coinciding with the 100 hourly simple moving average (price feed from HitBTC) around it.
If we look at the data feed from Bitfinex, then is it clear that Litecoin price is trading near a major pivot area. There is an ascending channel pattern forming on the hourly chart that may ignite the next move. The channel resistance area holds the key as it is sitting near the 61.8% Fib retracement level of the last drop from the $3.24 high to $3.04 low.
A break above the channel resistance area may take the price higher in the short term.
Looking at the indicators:
MACD – The hourly MACD is in the bullish slope and favoring more gains.
RSI – The hourly RSI is very positive, and suggesting that buyers are here to stay for some time.
On the downside, the channel support area must hold if buyers have to stay in control.
Intraday Support Level – $3.15
Intraday Resistance Level – $3.30
Charts from Bitfinex and HitBTC; hosted by Trading View