Litecoin was consolidating in price last week roughly between 1.87 and 2.00. This week, it extended higher to 2.14 before stalling to start the 3/10 session. Now ,as we start the 3/12 session, we can see that price has retreated back to 2.00 and there was support here. However, the market did not continue the earlier bullish trend (in the short-term), and is instead putting pressure on the 2.00 level again.
the 1H chart shows that the market is still bullish after the slide over the past couple of sessions. Price, although below the 50-hour SMA is still above the 100- and 200-hour SMAs. Now, if there is still some further near-term bearish attempt, litecoin would meet the 200-hour SMA near 1.95. Here if the 1H RSI is also tagging 40 and stalling, we should be prepared for another bullish attempt. In that scenario, ltcusd would have the 2.14 high in sight again.
Let’s take a look at the 4H chart.
The 4H chart shows that the break above 2.00 also broke above a previous resistance in February – it was a key break indeed. Now, the market has another chance to confirm the bullish outlook. Naturally the 200-hour SMA is the 50-period SMA in the 4H chart. Now, if price falls below that support, the next key support would be the 1.87-1.90 area, where price would meet the 100-period SMA, a rising speedline, as well as a previous support/resistance pivot area. As the 4H RSI approaches 40, if it rebounds, we would likely see maintenance of the bullish momentum, and thus a projection back to 2.14 with risk of pushing higher.
A break below the noted support factors would likely shift the market from the bullish outlook to a sideways/bearish one that would have the February low around 1.67 in sight.
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