The party continues in Litecoin markets as the price rose another 2.66% or $0.13 to $4.978. With successive gains, Litecoin is fast approaching its previous top of $5.237. The technical indicators reflect no weakness as of now.
Litecoin may have some more steam left in it, and hence, dips can be used to buy the cryptocurrency. Read on to find the latest technical factors below.
Litecoin Chart Structure – In yesterday’s rally, Litecoin jumped to $5.080 before easing slightly. Another factor weighing on Litecoin is the stalling of Bitcoin. I had earlier mentioned that the rise in Litecoin is positive correlated with Bitcoin, and any underperformance in Bitcoin will have a negative impact on Litecoin as well.
Fibonacci Retracements – The cryptocurrency is also expected to face fresh selling pressure near the 38.2% Fibonacci retracement level of $5.270, which is closer to the previous top. A jump to this level can be used to lighten the long positions as well as create new short positions.
Moving Average Convergence Divergence – The MACD, Signal Line and Histogram are all in the positive territory with respective values of 0.2145, 0.1012 and 0.1133.
Momentum – The Momentum indicator sees a strong rise in the value to 1.3726.
Money Flow Index – The MFI continues to advance along with the price appreciation. The latest MFI value is 66.9626.
Relative Strength Index – The 14-day RSI value is horizontal at 59.4302.
Litecoin is currently witnessing strong bullish participation, however, with every rise it becomes less attractive to create long positions. Market participants should wait for a dip before pouring money into long trades. Maintain a stop-loss below $4.360. Traders are also advised to keep track of the Bitcoin markets which are currently under slight pressure from profit-booking.
Short positions should only be considered while following a stop-loss above $5.300 (closing basis).