Litecoin extends its rally to hit a high of $3.140 as the cryptocurrency aims to soar past the immediate overhead resistance at $3.130. Currently at $3.121, Litecoin is in a strong bullish grip and may leapfrog to higher levels on consistent support from buyers.
Rising Bitcoin market is also aiding the Litecoin market.
Although the risks cited in the previous Litecoin price analysis Closing In have been averted for now, we can never be too cautious for a volatile cryptocurrency like this one. Therefore, let us see what the technical indicators have to say about the latest price advance.
Moving Average Convergence Divergence – While Litecoin threatens to challenge the resistance, the momentum is clearly favoring the bulls. The MACD value is 0.0397, the Signal Line is 0.0197 and the Histogram is 0.0201.
Momentum – After choppy action over the weekend, the Momentum indicator can be seen rising higher, reflecting the optimism surrounding the cryptocurrency. The Momentum reading has advanced to 0.1637.
Money Flow Index – In a clear departure from MACD and Momentum, the MFI has its head turned down. The value has dropped to 56.0313 even while the price has gained.
Relative Strength Index – The RSI is playing catch-up with other bullish technical indicators. The 14-day RSI value has very slowly climbed to a formidable 59.6627.
From the above stated latest technical considerations, it can be inferred that Litecoin could break the immediate ceiling. It may need a little more support from the bulls and the Bitcoin market (Bitcoin breaching $250 could act as a strong trigger!) to reach higher levels of up to $3.400-$3.450.
In an adverse scenario, if the market topples, then the traders should place a tight stop-loss just south of $3.000 while initiating fresh long trades.
And yes, do not forget to track the Bitcoin market for helpful trading signals.