ForexMinute.com — As Bitcoin continues to struggle establishing a proper bias, Litecoin too is falling behind its master in terms of low volume and restricted trading parameters. Despite correcting itself a little from the previous 1.61-to-1.43 fall, the silver coin has failed to establish a correction and is now moving sideways in a congested zone. Let’s have a look:
Litecoin 4H Chart
The LTCUSD chart clearly shows Litecoin in a strict congested zone, with Bollinger Band levels getting narrowed amidst no volatility. The price meanwhile is trending above the 50-, 100-, 200-H SMA, while the 4H RSI is just above 50 — indicating a bullish bias. This gets further intensified with the MACD blue curve, which is clearly trending inside a positive channel.
Despite the favoring technical indications, Litecoin is still vulnerable to strong downside pressure thanks to an extreme price stability we are seeing. Normally, such a calm trading signals have resulted into strong breakouts in past — something we expect to happen in this case as well.
To the downside, Litecoin is clearly attempting to float above the in-term support near 1.445, which is also the oversold threshold level. In case price breaks below this level, the next support target near 1.431 will come in sight, with further downside risk towards 1.422. We can though expect some correction near 1.431 only.
Conversely, if Litecoin reverses from 1.445 only, the initial upside target will set itself near 1.463 fiat. If broken, the correction might extend up to 1.475-1.477 area that had proven to possess a strong selling pressure in past. To establish a stronger bullish bias, Litecoin will need to break above 1.487, the previous channel resistance.