Lition (LIT) Aims for Higher Prices After Reclaiming Support

in LeoFinance9 days ago

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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.

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Chart By TradingView

Future movement

Cryptocurrency trader @Thebull_crypto outlined a LIT chart, stating that it could increase towards $10.

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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.

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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.

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Chart By TradingView

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Posted Using LeoFinance Beta