Litecoin has added another 6% in gains after amassing 22% over the weekend. Now at $4.849, Litecoin may look forward to reaching its next target of $5.200.
The technical indicators and the price action remain highly positive for Litecoin, however, this is mainly due to the leading cryptocurrency Bitcoin which looks poised to cross $300.
Litecoin Chart Structure – If we look at the action of the past 3 days, we find that Litecoin traded in a tight range of $4.360-4.880. But the latest action has pushed the price to a high of $4.900, indicating that the bulls are increasing the pressure.
Moving Average Convergence Divergence – MACD maintains its lead over the Signal Line and keeps the Histogram afloat. MACD currently reads 0.1714, Signal Line has a value of 0.0890 and the Histogram has a value of 0.0823.
Momentum – The Momentum has also advanced to 0.9775.
Money Flow Index – Another strong point is the jump in MFI to a 2-week high of 58.1889.
Relative Strength Index – The 14-day RSI value of 58.2268 is representative of the strong bullish undertone.
Technical indicators and the price chart suggest that Litecoin be bought at current levels. However, I must mention this is subject to condition that Bitcoin must cross above the resistance level of $300. If Bitcoin fails to cross the hurdle and reverses the immediate bullish trend, then expect a decline in Litecoin as well.
Long traders can consider building trading positions at current levels or on dips for a target of $5.200 by maintaining a stop-loss below $4.360.
The rise in the cryptocurrency value can also be attributed to the ongoing Greece crisis which has taken a turn for the worse after Greece’s Ex-Finance Minister Yanis Varoufakis admitted that he had a ‘contingency plan’ for exit from the Eurozone. The situation has worsened as the creditors have now demanded implementation of stricter reforms in exchange for the funding.