After consolidating below it for more than two months, Lition (LIT) has broken out from the $3.95 area and validated it as support afterwards.
While technical indicators provide a relatively neutral picture, the price action is firmly bullish.
LIT bounces at support
On Aug 9, LIT broke out from the $3.95 horizontal area, which had been acting as resistance since May 19. It proceeded to reach a high of $5.98 before falling once more.
However, it bounced once it reached the $3.95 area, validating it thrice as support (green icon). Therefore, the $3.90 area is now expected to act as support.
Technical indicators provide a mixed outlook. The MACD is positive but decreasing, while the RSI is at the 50 line.
Therefore, while the price action looks bullish, technical indicators are neutral.
Chart By TradingView
Future movement
Cryptocurrency trader @Thebull_crypto outlined a LIT chart, stating that it could increase towards $10.
Source: Twitter
The $9.85 area is both the 0.618 Fib retracement resistance level and a horizontal resistance area. Therefore, if LIT initiates an upward movement, it would be the most likely area to act as resistance. The next resistance area above it is at $13.20.
Chart By TradingView
A look at the six-hour chart supports this assessment. The overlap between the previous low and current high indicates that the decrease was corrective in nature.
Furthermore, both the RSI and MACD are moving upwards. The former is nearly positive, while the latter has already moved above the 50 line.
Therefore, it is likely that LIT will move upwards, potentially increasing towards the previously outlined resistance levels.
Chart By TradingViewFor BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
