ForexMinute.com — The Bitcoin’s influence on Litecoin continued yet another day when the latter fell heavily upon tailing the former’s price action. The downside momentum however has slowed down in past few hours, for the price is showing impressive bullish corrections at press time. In the meantime, the price has also entered into a new range, having invalidated its previously prevailing in-term support line.
As we enter another day of trading, we will be keeping our eyes on this new range, in which 3.917 fiat is serving as the new in-term support and the 4.126 fiat as the new in-term resistance level. Have a look:
Litecoin 4H Chart
The 4H BTC-e chart above clearly displays Litecoin in a strong bearish bias, for the price is currently trending below its 50, 100 and 200H SMAs, while the 4H RSI has also fallen down below the 40-mark. The MACD indicator, meanwhile, is also trending below the normal line and the signal curve. All these technical indicators point to a heavy selling pressure in the market.
Due to recent corrective signals, we will first be waiting for price to break above the in-term resistance level to bring our long positions back in game. Here, our medium-term upside target would be near 4.208 fiat while our stop loss on this trade would be near 4.097 fiat to help us get out the trade in a case the correction fails.
Looking at other way around, a run below the in-term support level will validate 3.843 fiat as our primary downside target. On this trade, our stop loss would be near 3.961 fiat.