In the past 24 hours, Litecoin price has swung from a low of $1.60 (my target achieved) to a high of $1.82, before giving up most of its gain to be trading at $1.71. In my yesterday’s analysis titled Weak Stance, I advised against shorting the cryptocurrency at lower levels and to sell only on a rise.
Litecoin may have derived its volatility from the turmoil in Bitcoin. But, it has also established a short-term trading range; with $1.60 as the floor and $1.82 as the ceiling (marked in the price chart below).
In one of those rare disconnects from Bitcoin, Litecoin is trying to push its way up against the dollar. And the technical indicators imposed on the 240-minute LTC/USD price chart also seem to be favoring the bulls.
Moving Average Convergence Divergence – The MACD indicator has crossed the Signal Line on the upside giving the Histogram a value of 0.0053. The MACD and the Signal Line are however in the negative territory with values of -0.0286 and -0.0339, respectively.
Momentum – In a major positive, the Momentum indicator has jumped to its highest level in a week. The current value of 0.0523 should lend confidence to the bulls in the short term, as remaining positive is the key to the upside.
Relative Strength Index – The RSI value has also turned up sharply after consolidating near 30 for a brief period. The value is 47.3740 as of now and should provide an impetus to the bulls after crossing 55.
But, this is not all. Another very critical observation is that even though Litecoin retested $1.60, none of the above-mentioned indicators retested their lows but, in fact, they are aiming to take out their respective previous highs.
This should interest the buyers who can look to creating minor long positions with a strict stop-loss placed below $1.60 (closing basis).