ForexMinute.com — Following the usual footsteps of Bitcoin, the silver cryptocurrency Litecoin also seems to be in a bias conflict, thanks to the extremely low trade volume in over the last 24 hours. Let’s have a detailed look:
Litecoin 4H Chart
On a 4H BTC-e chart, the Litecoin price is currently positioned slightly above the 50-, 100-, and 200-H SMA, while the 4H RSI is above 50. At the same time, you can notice the blue MACD indicator taking a dip towards the normal line, still in positive territory. These indicators overall imply a neutral sentiment in the market, with inclination towards downside.
At this point of time, the Litecoin price is testing the current in-term support near 1.431, below which lies the channel support, at 1.422. While it is possible that Litecoin will test these levels in upcoming hours — quite likely after sideways consolidation — there seems to be a reasonable buying pressure near the channel support. The price has previously corrected itself there, but had failed to establish an extended reversal. Placing shorts toward 1.431 therefore can ensure a neat profit for day traders.
However, if Litecoin price actions takes a volatile route, it might even attempt this month’s low near 1.366. We would there recommend our readers to place their stop losses just below 1.431, in case the correction invalidates.
In case price attempts a recovery from the in-term support level, it would be sighting 1.453 as its next target resistance, with upside risk positioned near 1.463. Therefore, entering the market near 1.431, while placing a long position towards 1.453 will ensure a decent profit.