Litecoin bulls are taking another shot at breaching the resistance after a session of profit booking. The resurgent bulls are driving their confidence from the rising Bitcoin market, which just topped $250 for the first time since August 19.
Litecoin is currently trading at $3.131, up 1.82 percent.
Even though Litecoin is holding its ground well, I am a bit unconvinced regarding the bullish undertone. So yes, I am only cautiously optimistic on Litecoin.
Litecoin Chart Structure – Litecoin remains afloat and upbeat, pushing itself against the overhead barrier repeatedly. The 9-day SMA overlaid on the daily LTC-USD price chart above is doing a great job as the primary support. The current 9-day SMA is $3.0836.
Moving Average Convergence Divergence – The MACD and the Signal Line have advanced to 0.0457 and 0.0294 respectively. The Histogram is relatively flat at 0.0163.
Momentum – The Momentum reading is showing an uptick; the value is now 0.1556.
Money Flow Index – The MFI seems to be arresting the losses as it pulls up the value to 46.3844.
Relative Strength Index – The underlying strength indicator shows a slight improvement to 60.0225.
Litecoin is trading on a positive note helped by the escalating Bitcoin price and minor bullish support. The technical indicators above are still not convincing enough, even though we are at a breakout level.
It would be very interesting to see how it all pans out. Complacency on the part of bears can cost them dearly as sustaining above $3.130, Litecoin will make an attempt to jump at least 10% higher. Similarly, if bulls fail to break past the resistance soon, they run the huge risk of momentum fading away. In that case, the then 9-day SMA might not provide much support.
So, trade with light positions at current level and increase proportionately as price heads lower, to minimize the risk. Put a tight stop-loss below $3.000.