Litecoin Price Key Highlights
- Litecoin price has been on a steady climb after breaking above a long-term consolidation pattern recently.
- Price is moving above an ascending trend line but appears to be having trouble making new highs, hinting that the bullish momentum is fading.
Litecoin price might be in for a downside break of the trend line support if the bull run loses steam and profit-taking takes place ahead of US event risks.
US Jobs Data to Spur Volatility
Cryptocurrencies are on the rise against the US dollar these days but the upcoming top-tier releases could inspire volatility or even a strong dollar rally. The NFP report is due on Friday and a 179K increase in hiring is eyed, possibly enough to keep the jobless rate steady at 5.1% and spur dollar gains.
If so, litecoin price could make a move below the trend line support around 4.40 and proceed to sell off until the next area of interest at 4.00.
A slight bearish divergence can be seen, as stochastic made lower highs while price made same-level highs. RSI is on the move down, indicating a pickup in bearish pressure. However, once these oscillators hit the oversold regions and turn higher, bulls could get back in the game and trigger a trend line bounce back to the previous highs at 4.85 or beyond.
The 100 SMA is safely above the 200 SMA and is increasing its lead, signaling that the rally is likely to be sustained. The next potential resistance might be located around the 5.00 mark.
Intraday support level – 4.40
Intraday resistance level – 4.85
Charts from TradingView