ForexMinute.com — Despite maintaining the congested parameters, Litecoin, in last 24 hours, attempted some exceptional upside corrections. The notably bullish movements brought some relief for the slugging Litecoin market; it however failed to extend itself amid selling pressure near the intraday highs. Let’s have a look:
Litecoin 4H Chart
The recent inclination in the Litecoin value has revised some technical readings. As you can look at the 4H BTC-e chart above, the price is clearly attempting to invalidate the overbought threshold level (the Upper Bollinger Band curve) by forming higher highs towards it. In the meantime, it is trending above the 50-, 100-, and 200-H SMA. Also, the 4H RSI is situated above 50, an area with a moderate buying pressure. The MACD curve is also situated above the normal line. These indicators, overall, displays a strong bullish sentiment in the market. But is it dependable?
The problem lies in the narrowness of the Bollinger Bands that indicate a low volatility in the Litecoin market. Therefore, even a slight movement towards either sides could change the landscape of technical indicators. The narrow price range however is still opening short-term opportunities for traders. At this hour, you can clearly see market attempting to cross above the in-term resistance level near 1.468. If it happens, it will simply validate an extended upside correction, where the primary upside risk will relocate toward 1.474. There could be some attractive long positions opened if the price ditches the in-term support. We would still recommend you to place you stop losses just below 1.459 in case the bias invalidates.
Conversely, 1.459 is also an active in-term support level which, if broken, could open some attractive short positions towards the primary downside risk 1.448.