Litecoin is struggling to push below 11.1, for a number of reasons.
1) Examining the LTC/USD on the thirty minute chart:
Then performing our Fibonacci study from the low of the 7th till its high, reveals a key Fibonacci level, in this case the 161.8% extension at 11.1. Price has tested this line a few times over the past thirty six hours.
2) Applying a longer term Fibonacci study to the hourly chart shows us 11.1 is also a Fib retracement level of 78.6%:
3) 11.0 is a psychological whole number – such numbers often provide natural support and resistance.
So we have three causes for this zone being a powerful support zone. With the Stochastics heading down, along with the Accelerator Oscillator and Awesome Oscillator having turned red, we could have expected further bears later today, but this support seems fairly strong for now.
I’m expecting another bounce off 11.1, and there will most likely be a correction with relation to the Bollinger Bands, since price as I speak is below the lower band, and shall aim to jump back within them very soon.
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