Litecoin rises 1 percent to $3.060 as buyers rush to enter the cryptocurrency near the strong support level marked in the chart below. With this, Litecoin has also averted the risk of an immediate downfall but it would be going too far to say that the cryptocurrency is out of the woods.
Let us discuss the updated technical levels and the chart structure required to make informed trading decisions.
Litecoin Chart Structure – The range is closing in on Litecoin; the support line is upward sloping while the resistance is a near-perfect horizontal. Two important levels from a trading perspective i.e. the current support and the resistance are $3.000 and $3.135 respectively.
Moving Average Convergence Divergence – The MACD, Signal Line and Histogram are holding above the 0-level, even though their respective values are very small. MACD now has a value of 0.0240, Signal Line has a value of 0.0038 and Histogram has a value of 0.0203.
Momentum – In the previous analysis, we discussed how the Momentum indicator had breached a crucial support level. Today, as the price has rebounded from the support, we are seeing a similar development in the Momentum reading as well. The latest Momentum value is 0.1340, a significant jump from yesterday’s 0.0015.
Money Flow Index – The value of the MFI remains depressed below the broken line (marked in the chart above). The latest value is 54.7421.
Relative Strength Index – The RSI has advanced only minutely to 56.2505.
While Litecoin consolidates inside the narrowing trading range, market participants would be ill-advised to trade this range. Now is the time when sitting on the sidelines and waiting for a breakout will result in better profit-making opportunities.
As Bitcoin stutters on its way up, it is halting the rise in Litecoin too. Currently near $243, Bitcoin’s Achilles Heel is $240 while that of Litecoin is $3.000.
Expect a strong rise if Litecoin breaches $3.135 in the next 24 hours.