- Litecoin price tried to recover from losses, but a bearish trend line formed on the hourly chart (data feed from Bitfinex) prevented the upside move.
- If the price fails to head higher, then a move back towards the last swing low of $3.27 is possible.
- There are many bearish signs emerging, which suggests that it won’t be easy for buyers to take the price higher.
Litecoin price looks set for yet another break, as the price is forming an interesting breakout pattern on the hourly chart.
Can buyers break the trend line resistance area?
Litecoin price faced a tough time lately, as sellers managed to defend the upside time and again. There are many hurdles on the way up for buyers, starting with a bearish trend line formed on the hourly chart (data feed from Bitfinex). If there is a break above the highlighted trend line and resistance area, then the price could head towards the 38.2% Fib level of the last drop from the $3.77 high to $3.27 low.
The most important point is that the stated fib level is positioned with the 100 hourly simple moving average. So, we can say that above the trend line the next resistance lies near $3.45.
The data feed from HitBTC suggests that the price may consolidate for some time before moving higher. There is a contracting triangle formed on the hourly chart as well, which could ignite a break moving ahead. A break below the last swing support may take the price towards $3.20 in the short term.
Looking at the indicators:
MACD – The hourly MACD is mostly flat, suggesting range moves.
Hourly RSI – The hourly RSI is just below the 50 level, which is a bearish call.
Intraday Support Level – $3.30
Intraday Resistance Level – $3.50-60
Charts from Bitfinex and HitBTC; hosted by Trading View