Litecoin is currently trading at $4.280, down 0.88 percent as Bitcoin slides.
The cryptocurrency is testing the patience of the trading community as it trades in a tight range for the fifth straight day. With most of the technical indicators remaining relatively unchanged, it is becoming incredibly tough to a call a direction. However, we know that Bitcoin as a leading trading instrument will prove to be a useful guide and therefore, that must be tracked too.
Below are the latest technical considerations for the daily LTC-USD price chart.
Litecoin Chart Structure – From yesterday’s $4.318, Litecoin stooped to an intraday low of $4.243 before regaining some ground.
Fibonacci Retracements – Litecoin has been unable to threaten the resistance posed by the 23.6% Fibonacci retracement of $4.471.
Moving Average Convergence Divergence – MACD has dropped to 0.0583, Signal Line has skid to 0.1222 and the Histogram is still in the negative region with a value of 0.0640.
Momentum – The Momentum reading witnessed slight erosion to -0.2974. Negative momentum will weigh on Litecoin in the near term.
Money Flow Index – The MFI remains particularly strong with a value of 63.6671.
Relative Strength Index – Since the start of this month, the RSI has remained extremely quiet. Even today, the value is at 50.4568, offering no help to the trading community.
It is anybody’s guess as to when the quiet consolidation in Litecoin would end. The technical indications and the chart structure are relatively flat apart from minor changes.
However, as I said earlier, I believe that any action in Litecoin would be fueled by a rise in Bitcoin, and Bitcoin is currently at a crucial juncture. If Bitcoin breaks now, expect a similar collapse in Litecoin.
Market participants are best advised to not time this market and practice patience. Unnecessary trading may result in losses.