Litecoin mounted a strong defense of the $100 level but was headed lower once more, with $108 being a level bulls would seek to defend. Cosmos bounced feebly off the $4.8 level following a bullish divergence, but bears pushed the prices lower and could flip it to resistance and Dogecoin retraced some of the gains it made on a recent surge.
Using the Fibonacci Retracement tool for LTC’s move from a swing low of $69.94 to a swing high of $124.4, some important levels of retracement are highlighted.
In the short-term, a move with above-average volume beneath the 23.6% level at $108.5 would likely test the support at $100. The short-term momentum had swung to the bears when they forced the price to $99, but the bulls have fought back.
The OBV has registered higher lows over the past two weeks, and hence any move downward can be regarded as a pullback and not a trend reversal. Another test of the $100 level and the subsequent breakout would reveal the direction of the next move for LTC, as would a surge past the $120 mark.
Cosmos exhibited bullish divergence between price and momentum about 12 hours prior to writing, and ATOM bounced nearly 5%. Yet the selling pressure was too strong and ATOM was unable to rise past the $5 mark.
The RSI showed a value of 36 and has moved beneath the neutral 50 over the past few days to indicate a downtrend in progress. It was likely that the $4.8 level would buckle and give way over the next few hours.
The next region of interest lies in the $4.6-$4.55 region, and bears would look to defend this, should the $4.8 price level be ceded to the bears.
Dogecoin was retracing some of the gains made after a strong surge, and generally, such retracements tend to visit the 50% and 61.8% retracement levels.
The MACD formed a bearish divergence and at the time of writing was headed lower. Using the Fibonacci Retracement tool, some levels can be used to enter scalp short trades.
The 23.6% level, if revisited by DOGE, could be an ideal short entry. A break beneath and retest of the 38.2% level at $0.0043 could also be used, with a target level of $0.0043, the 50% retracement level.
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