ForexMinute.com — After riding high on the Greek’s economy crisis, Litecoin is currently undergoing a weak downside correction. In over the last 24 hours, the price has shifted inside a definite trading range and is lacking the good-old volatile movements. It subsequently marks the end of the Grexit hype that had fueled the entire cryptocurrency market in past few days.
As we enter another day of trading, we are seeing Litecoin sighting the same in-term resistance level — near 4.228 — in hopes to recapture its lost bullish momentum. At the same time, 3.719 is still holding its position of the current in-term support. Let’s check out the level we expect to open some good trading opportunities for today.
Litecoin 4H Chart
The 4H BTC-e chart above displays Litecoin in a medium-term bullish bias, for the price is situated above its 50, 100 and 200H SMA and the 4H RSI is trending sideways between 62 and 70. The MACD blue curve is dipped below the signal curve, but meanwhile is maintaining its positive bias. The technical indicators jointly indicate a neutral selling/buying pressure in the market.
We are therefore hoping Litecoin to bounce between the prevailing in-term support and resistance lines: 3.719 and 4.228, respectively. At this point of time, we will be entering a long position towards the in-term line while placing our stop loss near 3.971. A break above 4.228 would validate 4.665 as the primary upside target. Despite being an attractive position, we would still recommend our readers to enter their position only when the price is above the in-term line. While doing so, do place you stop just below 4.228 to exit the market without being chopped.
Conversely, a run towards the temporary support line near 3.897 would open some decent short opportunities as well. A break further will bring 4.228 in sight. While entering the said short position, we will recommend our readers to place their stop near 3.832 to exit the market in case of a bias reversal.