ForexMinute.com — Last week, Litecoin experienced a notable buying volume that led its price to form new trading ranges. Ever since its upside bias, the silver coin is further maintaining its bullish outlook but, at the same time, is hinting a reversal in absence of enough upside volume to extend the prevailing bias. Let’s have a detailed look:
Litecoin 4H Chart
Ever since its drop in last week of May, Litecoin is pursuing a decent rally towards the medium-term resistance level near 1.815 fiat. The price meanwhile has risen above the 50- and 200-H SMA while, at the same time, is aligned neatly with its 100-H trendline near 1.767 — also the temporary resistance level. On the other hand, the 4H RSI is testing to cross above 60 in order to establish a stronger bullish bias in the market. The MACD indicator meanwhile is already inside the positive territory. These technical indicators overall indicate a medium-term bullish bias in the market.
As the market is further hinting a correction, our focus is neatly lying on the in-term resistance level. A break below 1.815 indeed validates 1.908 as the primary upside risk, therefore bringing in enough long opportunities above the in-term level. Before that, Litecoin is targeting 100-H trendline as its temporary resistance — above which lies a decent long opportunity towards 1.815. In these cased, we would recommend traders to place their stop losses near 1.740 in case the upside bias gets invalidated.
Conversely, a run towards the temporary support near 1.722 will validate 1.666 as the range support. Nevertheless, wait for a reversal to happen near the former, for it has kept the price from falling towards the downside levels in past. Even if you are planning to enter the short positions towards, make sure to place your stop loss near 1.740 to ensure a timely exit with a minimal loss.