Litecoin has formed a short-term base around $1.440 and is consistently striving to re-enter the previous trading band of $1.449-1.459. In the past 24 hours, the virtual currency has jumped up to $1.459 – the resistance level – before being brought down to the floor value of the previous trading range.
Litecoin is trading at $1.452, up 0.76% from yesterday’s observation of $1.441.
I had discussed in my previous analysis that Litecoin will reach the level of $1.455, at which market participants may initiate short positions by placing a stop-loss above $1.459. Litecoin has been unable to breach the mentioned stop-loss level until now.
Technically analyzing the 120-minute LTC/USD price chart reveals that Litecoin may be pushing to enter the previous price band, however, the bulls might not have it easy.
Litecoin Chart Structure – It can be seen from the chart presented that even though the cryptocurrency has moved up, the wobbly price advance fails to inspire confidence. Another point of contention is that the bulls have failed at least twice in their efforts to hold their ground in the trading range (marked as yellow).
Moving Average Convergence Divergence – The MACD indicator has swiftly reduced the losses and is fast approaching the positive territory. The Histogram value has turned positive to 0.0008 with MACD at -0.0001 and Signal Line at -0.0009.
Relative Strength Index – The latest RSI indicator reading should provide comfort to the bulls, having crossed the 50-mark on the upside. The 14-2h RSI minutely favors the bulls with a value of 51.3404.
Momentum – The Momentum indicator is also positive now, with a value of 0.0069.
The technical indicators are definitely supporting the bulls, however, I would advise waiting for stronger chart signals before initiating buy trades. Instead, market participants should continue to build short positions near $1.455-1.458 by placing a stop-loss above $1.459.