- Litecoin price dived recently sharply to trade near $3.01, but buyers appeared around the stated level to prevent losses.
- The price is below the 100 hourly simple moving average, which is a negative sign for buyers.
Litecoin price after testing $3.00 support area moved higher, but it might struggle to gain pace for more gains.
There was a sharp downside reaction in the Litecoin price this past week, as it dived towards an important support area of $3.00. It is where buyers appeared to prevent the downside and pushed the price higher. There is contracting triangle formed on the hourly chart of the Litecoin, which is setting up for a break in the near term. We need to see how the price will trade in the near term. The hourly RSI is well above the 50 level, which looks like favor of buyers and might help them to take the price higher moving ahead.
100 SMA as resistance
One of the most crucial point to remember is that the price is below the 100 simple moving average on the hourly chart. If the price moves higher from the current levels, then it might find resistance around the 100 SMA, which is sitting along with the triangle upper trend line Moreover, the 76.4% Fib retracement level of the last drop from the $4 high to $3 low. There is a nice price action underway which is a looking like setting up for a break. A break above the 76.4% Fib level could take the price towards the last swing high of $4.
On the downside, the triangle support area is a major swing area for buyers moving ahead.
Intraday Support Level – $3.50
Intraday Resistance Level – $3.75
The MACD is in the bullish zone, which is a positive sign moving ahead.
Charts courtesy of Trading View