ForexMinute.com — Compared to its senior Bitcoin, Litecoin is showing no interest in displaying any mention-worthy price action. From over the last 24 hours, the silver coin is lazily trending sideways and, in the process, is graving the possibilities of a bearish breakdown — like normally happens.
None the least, Litecoin has by far respected the trading parameters we had discussed in our previous analysis. It is, however, offering no profit-making opportunities with its tight spread movements. We would still be discussing the levels we’ll be watching out for today. But first let us understand the bias in which Litecoin is. Have a look:
Litecoin 4H Chart
The 4H BTC-e chart shows Litecoin in a medium-term bearish bias, for the price has fallen below 50 and 100H SMA, but is still above the 200H one. The 4H RSI is visibly dropping below the 40 mark, which is clearly a heavy selling region; and the MACD indicator is in negative bias. All these indicators point towards a strong selling pressure.
As you can see the chart, Litecoin is now attempting to break below the in-term resistance level near 4.290 fiat. If it manages to do so, it will validate 4.014 fiat as our primary downside target. While entering towards this position — or towards the secondary downside target near 3.713 fiat — it would be recommendable to place your stop loss near 4.388 fiat to exit the market in case of a bias reversal.
Conversely, there is a little chance of Litecoin attempting an upside correction, but we would still be expecting it to retest 4.683 fiat as its temporary resistance level. Only a break above this line will bring the in-term resistance 5.260 in sight. The prevailing downside pressure however limits this prediction.