A look at the Weekly Litecoin chart in logarithmic form shows that price fell to the $20-25 support area formed by the 2014 high.
Afterwards, the price began a rally, and it is now trading at $30.
Is this a correction or the beginning of a new rally?
Let’s take a closer look and find out.
A look at the indicators on the weekly chart gives us more information.
Price is facing resistance from the 200-period Moving Average, and the 7 and 200 period MA are close to making a bearish cross.
Furthermore, the MACD made a bullish cross and is now heading upwards.
Finally, the RSI went below 30 for the first time since 2014, but there is no divergence yet.
A look at the 3-day chart shows that price hit resistance provided by the 7-period moving average and retraced.
There is a tiny amount of divergence in the RSI, and the MACD has made a bullish cross.
Finally, the Chaikin Oscillator is almost positive for the first time since April.
A look at the Daily chart shows that price started the rally after a long period of bullish divergence in the RSI.
Furthermore, the MACD is almost positive for the first time since April but seems to have stagnated before crossing 0.
A closer look at the 6-hour chart shows that price ended the rally right at the area of previous resistance.
Furthermore, there is a bearish divergence in all three of the RSI, MACD and the Chaikin Oscillator. Price has currently retraced to the 0.5 fib line.
- The price fell to the major support area at $20-25, and a small rally ensued.
- Price retraced after bearish divergence and is now at the 0.5 fib line.
- Long-term indicators are leaning on turning bullish.
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