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Litecoin’s current price action offers plentiful trading opportunities to the market participants; opportunities with huge profit potentials at extremely low risks. Litecoin has been maintaining a tight range on an hourly basis and traders can adopt a buy low, sell high approach while limiting the risks involved by strictly following the below-prescribed stop-losses.
Litecoin is currently trading near the lower level of the range at $1.450.
Image: https://www.tradingview.com/x/i8grPWST/
Technical analysis of the 60-minute LTC/USD price chart indicates that things are indeed favorable for the participants from an immediate-term perspective.
Litecoin Chart Structure – The virtual currency has formed a range between $1.449 and $1.461 on an hourly basis. This is a tight range and hence, market participants are advised to trade near the extremes to turn the risk-reward ratio in their favor.
Bollinger Bands – The upper range of the BB also coincides with the upper limit of the trading range, thereby fortifying the level of $1.461 as the resistance.
Moving Average Convergence Divergence – The MACD indicator, the Signal Line, and the Histogram are only marginally negative with respective values of -0.0009, -0.0004, and -0.0005. The insignificant negative readings should not the worry the buyers.
Momentum – The Momentum indicator continues to wobble near the zero level. The 10-1h Momentum reading is minutely negative at -0.0009.
Relative Strength Index – Following the lead of previous technical indicators, the 14-1h RSI reading is also close to the neutral level of 50. The underlying strength reading has come in at 45.1069.
Conclusion
The technical indicators are only slightly weak, but that can be understood following that the price is at the bottom of the range. Buyers should consider buying Litecoin at the current level by placing a stop-loss below 1.449 for a target of $1.459. Similarly, short positions can be built near $1.459 for a target of $1.450 by placing a stop-loss above the resistance level of $1.461.
