Litecoin rises 2.92 percent to $3.098 as it breaks away from the consolidation phase which lasted for 7 consecutive days. This is also the highest closing level for Litecoin in over a month.
The rise in Litecoin could also be partly attributed to a strong surge in Bitcoin on the back of a strong momentum breakout. Helped by the price jump, Litecoin is now in the sniffing distance of a crucial overhead resistance which we discussed in the previous Litecoin analysis In a Fix?
Below are the latest technical considerations taken from the daily LTC-USD price chart.
Helped by the price jump, Litecoin is now in the sniffing distance of a crucial overhead resistance which we discussed in the previous Litecoin analysis In a Fix?
Litecoin Chart Structure – Going by the strong bullish candle that should serve as a wake-up call to the bears, Litecoin can pierce the strong resistance level of $3.135 (marked in the chart above). Above this resistance, expect Litecoin to witness massive short-covering which should further fuel the rally.
Moving Average Convergence Divergence – The MACD and the Histogram are comfortable in the positive region with respective values of 0.0230 and 0.0305. The Signal Line is trying hard to get into the same league but is still a tad short at -0.0075.
Momentum – The Momentum reading has surged to a fresh 1-month high of 0.2477.
Money Flow Index – The MFI indicator seems unimpressed and unperturbed by the strong upmove. The value is basically flat at 64.3625.
Relative Strength Index – The RSI has also hit a new monthly high of 59.5846 as underlying strength becomes stronger.
Litecoin is on a strong footing and may even violate the overhead resistance and soar. But that will not be without a similar positive action in Bitcoin.
Therefore, wait for a definite breakout before going long in Litecoin. Keep tracking the Bitcoin market for a better confirmation.