A look at the Litecoin weekly chart in logarithmic form shows that the price fell in the $ 20-25 support area formed by the 2014 high.
Subsequently, the price started a rally and is now trading at $ 30.
Is it a correction or the start of a new event?
Let's take a closer look and find out.
A look at the indicators on the weekly chart gives us more information.
The price is facing the resistance of the 200-period moving average, and the 7 and the 200 MA period are close to making a bearish cross.
In addition, the MACD has done a bullish cross and is now moving upward.
Finally, the RSI fell below 30 for the first time since 2014, but there is still no divergence.
A look at the 3-day chart shows that the resistance to the price shot provided by the 7-period moving average is retraced.
There is a small amount of divergence in the RSI, and the MACD has made a bullish cross.
Finally, Chaikin Oscillator is almost positive for the first time since April.
A look at the daily chart shows that the price started the rally after a long period of bullish divergence in the RSI.
In addition, 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 the price ended the rally right in the previous resistance area.
Furthermore, there is a bearish divergence in all three RSI, MACD and Chaikin Oscillator. The price is currently tracked on the 0.5 fib line.
- The price fell in the major support area at $ 20-25 and a small recovery followed.
- The price has been traced after the bearish divergence and is now on the 0.5 fib line.
- Long-term indicators tend to become bullish.
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