Litecoin price has yet again respected the low of $1.60 and bounced off, with the latest value of each Litecoin at $1.67. I had mentioned earlier that trading should be done near the extremes of the trading range to minimize the risk and earn better returns.
Image: https://www.tradingview.com/x/goIfxJxO/
An analysis of the 240-minute LTC/USD price chart reveals that the market may not violate the range anytime soon.
- Moving Average – Litecoin price has failed to sustain above the 20-4h simple moving average in the past several sessions (can be seen in the chart above). Even now, Litecoin value of $1.67 is below the 20-4h SMA of $1.6855, which is a short-term negative. However, in case the bulls manage to cross and sustain above this hurdle, the cryptocurrency may well reach for the upper band of the trading range – $1.80.
- Moving Average Convergence Divergence – The MACD indicator has maintained its levels near 0 despite the fall in the cryptocurrency’s price to its low levels. The current MACD reading is -0.0137 while that of the Signal Line is -0.0109. The Histogram is only marginally negative at -0.0028.
- Momentum – Even though the Momentum indicator is negative at -0.0351, it is still in close proximity to the positive territory, and near its recent highs. Also, the recent plunge in price was not support by a decline in momentum readings, which indicates that the bulls are ready to come into action once again.
- Relative Strength Index – Following the aforementioned technical indicators is the RSI, which currently reads 44.63. This indicator has also failed to retest its previous lows even with the price slump.
Litecoin price may see a rise in the coming sessions, but low-risk traders must wait for a dip towards $1.64 to go long in the cryptocurrency while the stop-loss is placed just south of $1.60.
