Litecoin hasn’t really moved in the past 24 hours with the price oscillating between $1.69 and $1.73. But this was always a possibility after the cryptocurrency was hit by a bout of extreme volatility. For each Litecoin, you will now have to shell out $1.69.
After technically analyzing the 240-minute LTC/USD price chart, it can be safely said that the cryptocurrency will respect the new range for quite some time. Hence, traders may benefit immensely from range trading following the analysis presented below.
Moving Average – The price chart above clearly reveals that the 20-4h moving average is acting as a strong resistance level for the cryptocurrency. The bulls are finding it hard to sustain above the current moving average of $1.70. Continuation of this behavior can result in more losses.
Moving Average Convergence Divergence – As the momentum fritters, the MACD and the Signal Line struggle to shrug off the negative levels. The latest values of MACD and Signal Line are -0.0177 and -0.0233, respectively. The Histogram value has also dropped to 0.0056.
Relative Strength Index – The RSI value has failed to make new highs as the sideways consolidation continues. The current reading of 45.3842 slightly favors the bears but, if in the coming sessions bulls can manage to take the value north of 55, then substantial gains can be expected in Litecoin.
Momentum – The Momentum indicator has slumped into the negative territory following a lack of action by the bulls. Its current value of -0.0034 has punched a hole in the bullish optimism.
In the current situation where the price is almost between the support and the resistance, it is best to wait for the price to near the extremes before making a trade. That would immensely reduce the risk exposure and might result in better returns.