Litecoin posted an exceptional rise from yesterday’s $1.441 to an intraday high of $1.475 before bulls stopped to recharge their batteries. With this surge, Litecoin also breached the trading range on the upside before profit booking dragged the price back into the range.
Litecoin is currently trading up 0.7% at $1.451.
Litecoin’s recent high volatility price action prompts us to revise the trading levels. Presented below are the technical observations from a 120-minute LTC/USD price chart.
Litecoin Chart Structure – Backed by strong bullish mood, Litecoin surged above the crucial resistance level of $1.460 to hit a high of $1.475. But, the virtual currency was soon hit by a bout of extreme volatility which saw the price plunge to $1.442, erasing all the gains achieved since yesterday. This particular price action clearly tells that investors are waiting to unload their investments at higher levels.
Moving Average Convergence Divergence – The Histogram has sharply reversed the gains, falling from a high of 0.28 to -0.13. On a bearish note, the MACD indicator has crossed the Signal Line on the downside; the latest MACD value is 0.0013 while that of the Signal Line is 0.0027.
Momentum – The Momentum indicator reading has nosedived into the negative region following the pullback. Currently, the momentum value is -0.0153.
Relative Strength Index – The RSI reading is back at sub-50 levels, conveying a slightly bearish bias. The 14-2h RSI reading is 45.8774.
From a technical viewpoint, things seem to be favoring the bears, however, refusal of the market to close below $1.450 indicates that bulls will make repeated attempts to scale previous highs. Buy near $1.450 for a target of $1.460 by maintaining a stop-loss below $1.448. Build your positions factoring in the high volatility and personal risk preferences. Market participants may also consider short positions if the price rises to $1.475-1.480 for a target of $1.460.