ForexMinute.com — After establishing its base near 3.226 fiat last week, Litecoin has recovered impressively, but only to enter into a consolidation pattern. Speaking particularly of last 48 hours, the silver cryptocurrency has shown no impressive price actions on a 4-H timeframe. It is simply failing to form any intraday highs and lows, something that could have hinted a breakout towards other sides. The trading opportunities, as a result, are also negligible amid this flat price action.
Let’s have a look at this chart to understand it further:
Litecoin 4H Chart
The 4H BTC-e chart above displays Litecoin in a bias conflict, even when the price is still below its 50 and 100H SMA, and the 4H RSI has dropped to below 45. The MACD indicator, albeit above its signal curve, is maintaining its negative bias. All these technical indicators point towards uncertainties in the market, providing a very low trading traffic on the other hand.
Currently, Litecoin is in midst of its in-term support and resistance levels, 3.226 and 4.268, respectively. At first, we will waiting for price to show a little inclination towards either of these levels, and will place our short/long positions likewise. With saying so, if we get a break from current in-term support level, we will look to enter long towards the primary downside target 2.680 fiat. Meanwhile, our stop loss will be near 3.937 in this trade, to avoid being chopped off in case the price bounced back.
Conversely, a run above the in-term resistance level will validate 4.922 fiat as our primary upside target. On this trade, our stop loss will be near 3.883 fiat.