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After jumping to a 4-month high of $2.100, Litecoin is consolidating near $2.000 as bulls take a breather while the market participants await a correction. Today’s price level of $2.008 is relatively unchanged from yesterday’s $2.013 as the cryptocurrency trades in a tight range of $1.980-2.030. However, after a terrible day at work, bears might not make a resounding comeback very soon, so buyers can remain at ease.
Image: https://www.tradingview.com/x/vzYywdBC/
An analysis of the 240-minute LTC-USD price chart signifies that the muted action in Litecoin will not last for long, and that the breakout from the thin range will most likely be on the upside.
Litecoin Chart Structure – Litecoin failed to close above the upper range of the trading channel (marked in the chart) and has consolidated instead. This consolidation has shifted the resistance level up to $2.070 while support from the lower range comes in at $1.910.
MACD – The Moving Average Convergence Divergence reading has registered a bearish crossover with the Signal Line. As a result, the Histogram value collapsed into the negative territory. The MACD and Signal Line values are still near the highs at 0.0494 and 0.0561 respectively. The Histogram is sub-zero with a value of -0.0067.
Momentum – After a brief slump into the negative region, the Momentum reading has risen again to a positive value of 0.0191. Maintaining the positivity is essential to more gains.
Relative Strength Index – Litecoin is still overpriced considering the latest RSI indicator reading of 69.8316. But strong momentum can easily make it more expensive.
Conclusion
Litecoin’s chart structure and underlying momentum represent strong bullishness in the cryptocurrency. However, the overbought valuation may deter some from buying into the cryptocurrency. Traders with a high-risk appetite can consider buying Litecoin now and on dips down to $1.940 until $1.900 is breached. Expect Litecoin to aim for $2.070 as it crosses $2.030. Volatility will remain on the lower end. Low-risk traders may have to wait for cheaper valuations.
