After having stopped for breath, bulls have steamrolled the bears and Litecoin surged 5.6% to hit the highest level in a week. With this rise, Litecoin has also broken away from a medium-term trading range and looks well poised to accumulate hefty gains going ahead.
Owing to the strong advance, Litecoin has become expensive to $1.532.
Technical analysis of the 240-minute LTC/USD price chart indicates that even after the massive surge, there is still steam left in Litecoin and it may eventually touch $1.600.
Litecoin Chart Structure – Litecoin has staged a positive breakout after having consolidated sideways for nearly two weeks. The bulls have completely decimated the bears and short sellers must be running for cover as the rally only extends with every passing hour. The next target for Litecoin now comes at $1.608 (marked in the chart).
Moving Average Convergence Divergence – The MACD indicator has soared to 0.0110 while the Signal Line value has leapt to 0.0049. The Histogram value has also added more value rising to 0.0061. Since all the three components are highly positive, Litecoin may jump to even higher levels before the fuel runs out
Momentum – The recent advance is also well-supported by a strong underlying momentum. The Momentum indicator, with a value of 0.0685, is now threatening the highs achieved in the past two weeks. My expectation is that it will top the previous momentum readings.
Relative Strength Index – The cryptocurrency has entered into the overbought territory, according to the RSI value of 74.1585. But, more overvaluation may be in the offing.
The rally in Litecoin is a great opportunity to make profits. Buy Litecoin on dips, maintaining a stop-loss below $1.480 (closing basis) for a target of $1.600. Bulls are not expected to loosen their grip, but rather, further liquidation of short positions will only aid in pushing the price higher. Book profits near $1.600.