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- Litecoin price recovered after taking support from $196 levels in Tuesdays trading session
- Litecoin price may be taking a hiatus before resuming the bear rally as the price hasn’t touched the crucial support yet, which could bring in the necessary buying pressure
Litecoin price is currently moving downward as the price faced resistance at $225. The Coin is expected to form a symmetrical triangle for which the price is declining towards $180, a crucial support zone. The volume analysis shows moderate volume, which shows no signs of reversal yet, and the price range has equal buying and selling volumes, causing the coin to not bounce back with heavy buying. The market-cap and 24-hour volume are $13,553,986,003 and $6,451,865,324 respectively.
Decision Time: Litecoin Price Testing 50-EMA
Left Image: Litecoin price has formed a bullish engulfing candlestick pattern on the 4-hour time frame, which signals a possible reversal; the new session began with an opening above the last session and hence is likely to resume the reversal. The crucial retracement supports exist at $200(38.2%), $191(50%), $183(61.8%), and $183(61.8%). The crucial resistances lie at $211(23.6%) and $228(0%).
Right Image: The know of 10-EMA, 20-EMA, and 50-EMA restrict the reversal to transcend above $205-$208 zones. The 200-EMA is remitting support which aided the coin to reverse from $190.
Bollinger Band shows a halt in the downward rally, as the lower band contracted and is aiding the coin to rise till median, i.e., 10-EMA at $205. A rejection from the median will make the coin continue the downward trend till $180, probably while breakout will confirm the support along $190 and push the coin toward the previous high of $228.
RSI is below the 50 levels, suggesting a weaker strength and a probability of continuing downward. However, the breakout from the 10-EMA will help the RSI rise above 50, which can bring in more bulls for the coin.
The MACD98,21,5) is also preparing for a bullish convergence which can trigger a strong buy signal for the bulls as the indicator is currently floating in the negative territory.
Conclusion
Litecoin is currently restricted between the 50-EMA and 200-EMA in the 4-hour time frame, leading to either side’s volatile movements. The coin receives strong support from 200-EMA and Fibonacci levels while the resistance from the knot of 10-EMA, 20-EMA, and 50-EMA.
Support: $183(61.8% retracement), $191(200-EMA and 50% retracement) and $200(38.2% retracement,
Resistance: $205-$208(10-EMA, 20-EMA and 50-EMA), $211(23.6% retracement) and $228(0% retracement)
