ForexMinute.com — In over the last 24 hours, the Litecoin price action has customarily followed its closest counterpart Bitcoin. With that said, the silver cryptocurrency is all bearish, but is still maintaining its range unlike its predecessor — a good thing for our intraday breakout strategy.
Litecoin 4H Chart
As you can see the BTC-e chart above, the Litecoin price is well within its parameters. Due to the low volatility we have been noticing, we have narrowed down our trading range, with 4.015 fiat serving as our in-term resistance, and 3.823 fiat as our in-term support level. These are the levels we’ll be eyeing today.
In the meantime, the technical indicators for Litecoin are nowhere bullish. The price, as you can see, is now below its 50, 100 and 200H SMAs. The 4H RSI has been dipped to near 40 due to the recent sellouts. The MACD indicator, meanwhile, is still hugging its normal line. According to these technicalities, Litecoin is in mood to go south.
With that said, we would first wait for price to break below the in-term support level to validate 3.762 fiat as our immediate downside target. On this trade, our stop loss will remain to be near 3.839 fiat, considering there is a bounce back.
Conversely, a run towards the in-term resistance level will open enough long positions for us. We, however, will looking for Litecoin to break above the said level, an action that would have put our long towards 4.070 fiat. On this trade, a stop loss near 3.975 fiat would ensure to have us exit the trade in case of a bias reversal.