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Litecoin has broken free from the hourly trading range on the downside, however, not before offering several highly lucrative trading opportunities to the market participants. I had mentioned in my previous analysis that Litecoin can be bought near $1.450 for a target of $1.459 by placing a stop-loss below $1.449. And there were plenty of such opportunities to trade in the past 24 hours.
After cracking below the crucial support level, Litecoin is trading at $1.441.
Image: https://www.tradingview.com/x/AnuRgOgU/
The latest collapse warrants a revision of the trading levels and the strategies. For this purpose, an analysis of the 120-minute LTC/USD price chart has been performed.
Litecoin Chart Structure – Litecoin has breached the support of $1.449 on the back of strong trading activity (marked in the chart). Technically, the market should experience strong supply pressure as it nears the zone of $1.450-1.452. The level of $1.460 continued to act as an extremely strong ceiling for the bulls.
Momentum – The 10-2h Momentum reading is significantly negative at -0.0179. Negative momentum readings indicate bearish bias.
Relative Strength Index – The RSI indicator reading of 42.2934 mirrors the weakness in the virtual currency. The strength reading must catch up to at least 50 if bulls are to force a trend reversal.
Moving Average Convergence Divergence – The MACD indicator relentlessly digs deeper into the negative territory along with the Signal Line. The latest MACD value is -0.0029 while the recent Signal Line value is -0.0013. The Histogram is managing to consolidate near -0.0015.
Conclusion
Even as Litecoin has broken the crucial floor of $1.449, it may make several attempts to head above $1.450. Short-term traders may consider building bearish positions on bounces up to $1.452-1.455 by placing a strict stop-loss above $1.459. The target on the downside should be revised to $1.442. Market participants are advised to not resort to impulse buying. The downtrend is not expected to reverse anytime soon.
