Litecoin Price Analysis: Hitting Major Resistance

Litecoin Price Analysis: Hitting Major Resistance

The Litecoin (LTC) price continues to surge following an impressive run over the past month but is it ripe for a pullback? Lets take a look.


Fibonacci Retracement


[img]https://bitcoinist.com/wp-content/uploads/2019/03/FireShot-Capture-342-LTCBTC_-0.015228-?2.19--Unnamed--TradingView-www.tradingview.com_.png[/img]

If we take a look at the Fibonacci retracement tool and draw a simple line from the all-time high to its most recent bottom, we can see that the price of Litecoin (LTC) against Bitcoin (BTC) has largely respected each channel while stair-stepping upwards.

After bursting through 0.011 BTC and consolidating the yellow channel, Litecoin subsequently burst through 0.014 BTC. Today, the price of silver to Bitcoins gold bounced off what will most probably provide some serious resistance 0.016 BTC. This level acted as previous support from April to mid-June 2018. Knowing that past support frequently becomes resistance, it stands to reason that LTC will have trouble breaking through this level without further consolidation and a healthy pullback.


Relative Strength Indexes


[img]https://bitcoinist.com/wp-content/uploads/2019/03/FireShot-Capture-343-LTCBTC_-0.015275-?2.51--Unnamed--TradingView-www.tradingview.com_.png[/img]

The daily relative strength index (RSI) has once again entered the overbought territory, which signals that the price of Litecoin (LTC) may need to cool off.

More alarming, however, is the severe bearish divergence which continues to rear its ugly head. As you can see in the above chart, the price of Litecoin continues to rise and put in higher highs while the RSI continues to decline. This is generally a bearish signal that the price needs to correct itself and now seems like a ripe time for Litecoin to experience a major profit-taking event as it runs up against a significant level of past support.


Support Levels


[img]https://bitcoinist.com/wp-content/uploads/2019/03/FireShot-Capture-344-LTCBTC_-0.015277-?2.52--Unnamed--TradingView-www.tradingview.com_.png[/img]

Should Litecoin (LTC) experience a pullback in the near future, there are significant levels of support underneath that should prevent a massive decline.

The exponential moving average (EMA) ribbon, for example, stands to provide the first lines of defense against the bears. These lines would likely match the Fibonacci level between 0.0135 and 0.014 BTC.

In the event of a major profit-taking event and a massive red candle, the 200-week moving average (blue line) would be the last line of defense. A close below that level would be downright catastrophic but that is currently unlikely and not worth fretting over.

What do you think of the Litecoin (LTC) price? Let us know your thoughts in the comments below!

Images courtesy of TradingView.

The post Litecoin Price Analysis: Hitting Major Resistance appeared first on Bitcoinist.com.

16.03.2019 / 00:40 59
Litecoin (LTC) Price Analysis: Healthy Pullback Could Lead to More Upside Litecoin (LTC) Price Analysis: Healthy
The price of Litecoin (LTC) is currently consolidating after a small pullback from the well-overbought levels seen late last week. Is there more
Litecoin Price Analysis: How High Will Halving Hype Push LTC? Litecoin Price Analysis: How High Will
In approximately 179 days, Litecoin (LTC) will undergo a block-reward halving cutting the coin reward for miners from 25 to 12.5 coins. With
Bitcoin Price Technical Analysis for 03/28/2018  Time for a Pullback? Bitcoin Price Technical Analysis for
Bitcoin Price Key Highlights Bitcoin price continues to trend lower and is inside a descending channel on the 1-hour time frame. Price is currently
Litecoin Price Analysis: LTC/USD Corrects Lower Litecoin Price Analysis: LTC/USD
It is currently trading well below the $162 level and the 100 hourly simple moving average. The current downside move is heading towards another
Litecoin Price Analysis: LTC/USD is Back in Uptrend Litecoin Price Analysis: LTC/USD is
It broke the 23.6% Fib retracement level of the last wave from the $155 low to $175 high. However, there is a major bullish trend line forming with
Litecoin Price Analysis: LTC/USD is Struggling to Bounce Back Litecoin Price Analysis: LTC/USD is
However, there is a major resistance near $210, which is preventing further recoveries. There is also a short-term bearish trend line forming with
Comments (0)
Add a comment
Comment on