Litecoin (LTCUSD) 1H Chart 3/4 (click to enlarge)
This week, litecoin broke a above tight consolidation range between roughly 1.80 and 1.90. In the 1H chart, we can see that price has reached 2.00, but is now stalling as ltcusd round resistance here. In the 1H chart we can also see that price is breaking below the 50-hour SMA and a triangle pattern formed this week. The 1H RSI is threatening to break below 40, which would reflect the loss of this week’s bullish momentum. Price looks poised to test the broken range (1.80-1.90).
The 1.85-1.90 area is the upper half of the noted range. This is also where the 200-hour SMA resides. If price can hold above 1.85, it still maintains a bullish bias in the near to short-term. In this outlook, there would be upside risk not only back towards the 2.00 handle, but also to a resistance pivot around 2.44, as well as the high on the year around 2.75.
Litecoin (LTCUSD) 4H Chart 3/4
(click to enlarge)
In the 4H chart, we can see that the triangle breakout is still immature. Also, note the cluster of SMAs around 1.85. If price does come down to this area, it will also be challenged by a rising speedline coming up from January’s and 2015’s low around 1.67. This is another reason the 1.85 area would be key. A break below 1.83 for example will likely clear the aforementioned support factors and signal a bearish outlook, especially if the 4H RSI also falls below 40.
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