ForexMinute.com — Following the slippery behavior in Bitcoin’s price action, Litecoin too is going through a similar bearish momentum. In over the last 24 hours, the silver cryptocurrency has fallen by 3.5% amid a noticeable selling pressure near the intraday high. The downward rally meanwhile has broken important support levels, and is now waiting to establish a definite bottom to attempt a bounce back.
As we enter another day of trading, the price action is offering enough opportunities to get in short on the back of this downside movements. But there are also a few risk levels we’ll gonna need to understand to know when to exit the market. So, with this said, we’ll be eyeing on any chance of correction during today’s trading session. Buying the dips will be our top priority.
Litecoin 4H Chart
As we can see, Litecoin is currently in midst of our new range, serving 4.651 fiat as its new in-term resistance level and 4.393 fiat as its new in-term support level. We are expecting price to hold this range for today.
At first, we will be looking for price to attempt breaking above the in-term resistance level to validate 4.841 fiat as our medium-term upside target. On this trade, our stop loss will be near 4.584 fiat. However, if the correction is in mood to extend itself further, we ill be waiting for price to break below 4.393 fiat, which would have us put a short towards the immediate downside target near 4.243 fiat. On this trade, our stop loss will be near 4.448 fiat.
On technical grounds, Litecoin is maintaining its near-term bearish bias, for the RSI and MACD have dipped further inside the selling region. However, the price has still managed to stay above its 50, 100 and 200H SMAs, indicating a possible buyout if any of these levels are tested in the next 24 hours.