Litecoin started this week failing to break above a very short-term consolidation resistance around 1.82. The 1H chart shows the cryptocurrency falling sharply but just short of the 1.60 low from last week. Still the decline revived the bearish outlook at least for the near-term as price fell below the 200-, 100-, and 50-hour SMAs, and the 1H RSI dipped below 30.
Today after failing to tag 1.60, buyers boosted ltcusd up above 1.80, but only briefly. Again, sellers defended this 1.82 resistane and kept litecoin in consolidation roughly between 1.60 and 1.82.
Although the direction is unclear because of this week’s messy price action, we can say that at the end of the 3/25 session, litecoin has left a slight bearish bias. The fact that the RSI failed to tag 70 shows lack of bullish momentum in the near-term. Also, the fact that price failed to break above the 200-hour SMA and is now back below the 100-, and 50-hour SMAs also shows that bears are in charge, at least in the near-term (1H chart).
Let’s take a look at the 4H chart:
In the 4H chart we can see that below 1.60, there is a support/resistance area around 1.40. Below 1.40, ltcusd would likely open up the 1.10 low on the year. With a prevailing downtrend from 2014 that would still be in play, the 1.10 support would be vulnerable to risk of litecoin extending lower to test parity (1.00).
A break back above 1.82 would keep litecoin in a consolidation mode. In the near-term it would open up the 2.00 handle. If price can start holding above 1.80, there would still be upside pressure towards the 2.44 resistance pivot in January. Above 2.45, litecoin would start looking bullish, with at least the 2.75 high on the year in sight.
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