Litecoin price is struggling to cross the $58.00-60.00 resistance level against the USD, and facing bearish pull towards the strong support zone near $55 mark. Will the price of Litecoin remains at risk of more looses in short-term?
05 October 2018- Litecoin price was trying to recover after a huge selloff earlier this week. The coin is now trading near $57 mark with the market cap of $3.38 Billion according to Bitfinex Exchange. The price of Litecoin has dropped by 10.33% with a total volume of over $ 122.14 Million in the last 1 week.
Charlie Lee – the founder of Litecoin was also undergoing a spiral with weekly numbers showing that the coin was falling at the rate of 7.90%. Most importantly, a major share of Litecoin’s trade volume was held by the Chinese cryptocurrency exchange called DOBI Trade which held 15.30% of the total volume. Litecoin was also in the news recently when it was announced that the cryptocurrency was among three coins that can be purchased on Brazilian investment funds. This effectively means that investment firms can now buy a share in foreign funds including Bitcoin, Ethereum and Litecoin.
Litecoin Technical Analysis: Bulls Might Break the $55 Handle Soon
Moving to the technical analysis part, most of the traders are concerned about the price break below $55 level, as Litecoin forms a strong support at this point. A drop below this point might drag the prices near monthly lows of $47. As the overall cryptomarket is bearish today, the price might show bearish momentum as well.
However, the bullish move was capped by above the $60.00 resistance levels. If the buyers struggled to clear the $60 mark than it might result in a bearish reaction.
The 100 SMA line is below the 200 SMA line in the daily time-frame which signals that the path of least resistance is pointing towards the downside. As per the SMA, the coin might face the bearish pressure in short-term.
The most important hurdle for buyers is this week’s followed crucial bearish trend line with current resistance at $59.00 on the hourly chart of the Litecoin. Furthermore, the 100 hourly SMA is also near the trend line resistance at $58.5 zone. Therefore, if there is an upside break above the trend line and the 100 hourly SMA, there could be more gains in the near term above the $60 level.
On the downside, Litecoin price should hold above the $55.00 strong support. If failed to do so, then there is a risk of more losses towards the $50 – $47 levels.
- The Relative Strength Index(14) value is below 50 which signals “Sell”
- The William%R signals the selling action on daily & weekly time-frame.
- MACD(12,26) – “Weekly” signal in daily charts.
- ATR(14) signals Litecoin is less volatile.
Litecoin Weekly Pivot Points
Litecoin price has a strong significant weekly support at $55 and resistance near $66 levels.