- Litecoin price after trading lower to trade near $2.40 managed to recover ground and traded higher.
- A bearish trend line is formed on the hourly chart of the Litecoin price, which is acting as a barrier for sellers.
Litecoin price might head higher in the near term, as there are a few bullish signs emerging on the hourly chart.
Can Buyers Overcome Odds?
There was a downside reaction noted in the Litecoin price, which took the price towards $2.40. However, later buyers appeared to protect losses and took the price higher. There is a bearish trend line formed on the hourly chart, which the price is attempting to break. The most important point to note is that the price is above the 100 hourly simple moving average, which is a positive sign.
If buyers manage to clear the trend line and resistance area, then a move towards the 50% Fib retracement level of the last drop from the $4.00 high to $2.40 low is possible. Any further gains could push the price towards the next hurdle, which might be around the 61.8% Fib level. However, if there is a break and close above the trend line and resistance area, then buyers might eye a test of the last high of $4.00.
On the other hand, if there is no break and buyers fail to take the price higher, then a move below the 100 hourly SMA is possible in the short term. An hourly close below the 100 SMA might be a bearish call, and could push the price towards the last swing low of $2.40.
Intraday Support Level – $2.80
Intraday Resistance Level – $3.30
The hourly RSI and MACD are showing negative signs, which might encourage sellers to fight and take the price lower.
Charts courtesy of Trading View
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