ForexMinute.com — The bullish corrections made by Litecoin during the weekend are on a continuum. In over the last 24 hours, the silver cryptocurrency has managed to extend its near-term bullish bias, with its price rising 1.45% and marking the end of the previous bearish bias. The uprising is clearly influenced by Bitcoin, whose very own value has surged by 1.74% within the same timeframe.
The said uptrend, meanwhile, has followed the intraday breakout strategy we discussed in our previous analysis. The resistance level we marked yesterday played well and brought a decent profit to our intraday trade. And as the price goes further ahead, we can expect an decisive break in the next 24 hours. Have a look:
Litecoin 4H Chart
The 4H BTC-e chart above clearly displays the technical indicators favoring a near-term bullish bias, for the price is now trending above its 50 and 100H SMAs and the RSI is floating near the overbought region — near 70. The MACD indicator, on the other hand, is maintaining its overall positive bias as well, indicating a favorable buying scenario.
The range we discussed in our previous analysis, meanwhile, is still standing correct, through the in-term resistance near 3.080 fiat is looking relatively weak. The in-term support near 2.890 fiat is still in play to address any failure of the ongoing uptrend.
We would, of course, be waiting for price to float above the in-term resistance to validate 3.207 fiat as our primary upside target. The price action meanwhile is till offering a similar long opportunity towards the medium-term upside target near 3.143 fiat. Though, make sure to place your stop loss near 3.066 to come out of your position in case of a bias reversal.
Looking at the other way around, a run towards the in-term support line would first have a decent obstruction near 2.931 fiat. This level has supported the rally we are seeing at press time, and promises to stay intact even in events of downtrends. We would therefore be placing our short towards 2.931 fiat in case the upside bias is invalidated. Any further crash would have put a similar position towards the in-term resistance.