Currently trading at $3.010, Litecoin is in the middle of a range and looks undecided regarding the future course of action. Obviously, positive reinforcement from the Bitcoin market will help but the extent of that is still unclear.
Let us take help from the daily LTC-USD price chart to find out information that may assist the short-term traders.
Litecoin Chart Structure – For the past 7 trading sessions, excluding the current, Litecoin has been trading on a muted note. This has happened post the big fall from $3.137 to $2.910.
Market participants should also note that Litecoin has established a big trading range where the downside has been protected by the upward sloping support line (marked in the chart above) and the upside has been capped at $3.140. The support line has been retested thrice, as can be seen.
Moving Average Convergence Divergence – While the MACD and the Histogram are running positive with respective values of 0.0067 and 0.0225, the Signal Line has failed to shrug off the negative values. Signal Line, on its upward course, has advanced to -0.0158.
Momentum – The latest Momentum indicator reading is 0.1450.
Money Flow Index – That Litecoin is letting off some steam is also reflected by the declining MFI values. The latest MFI value is 60.2645.
Relative Strength Index – The 14-day RSI value of 54.4812 is fairly neutral and does not provide any useful insight.
The current situation in Litecoin can turn in anybody’s favor. Market participants would be best advised to trade the cryptocurrency when the price reaches either the support or the resistance. The latest technical indications are a mixed bag. A breakout from this range may take longer than expected.
Place tight stop-losses beyond the mentioned technical levels. Volatility is expected to remain on the lower end for the next 24-48 hours.
Keep tracking the Bitcoin market for clues about the future direction.