Litecoin bears have been smoked by the massive 27% rally in the past 24 hours following a high volume breakout from the range I discussed in my previous analysis, New Range. The surreal rise in Litecoin price has also pushed it to the highest level of 2015.
Litecoin is currently trading at $3.871, a strong advance from yesterday’s $3.047.
Litecoin’s jump to a fresh 2015-high closely follows Bitcoin’s leap to a new June high, as the Greece crisis comes to its D-day. A technical look at the 240-minute LTC-USD price chart above tells that Litecoin has entered the “no-buy” zone due to its highly stretched valuation.
Litecoin Chart Structure – In my previous analysis, I had advised that if Litecoin breaks out of the mentioned trading range, there would be a swift move in the chosen direction. Bulls broke the upper barrier on high volume and a frantic surge has followed.
Moving Average Convergence Divergence – The MACD, the Signal Line, and the Histogram have risen sharply following the breakout. The MACD has registered a new weekly high of 0.2150 while the Signal Line is going strong at 0.1024. As MACD deviates farther away from Signal Line, Histogram rises to 0.1126.
Momentum – The Momentum reading has witnessed a significant jump from 0.0670 to 0.8055.
Relative Strength Index – Litecoin’s stratospheric valuation is confirmed by the 14-4h RSI value of 86.0279.
The euphoric mood and heavy speculation may push the price even higher, but at current levels, Litecoin is surely not a buy. Market participants are strongly advised to not resort to impulse buying and wait for reasonable levels before making a trade. Those who created long positions post the breakout should consider locking in partial or full profits. Closely track the outcome of the Greece crisis as that is rumored to be fueling the rise in the value of cryptocurrencies.