Immediately following the day’s open, Litecoin lost strength against its more valuable cryptocurrency counterpart with the LTCBTC pair dipping from 0.02895 to 0.02805 in just an hour. The pair has since traded within a relatively tight range, with in-term resistance at 0.02852 and support at 0.2694. Whether the range will hold throughout the day remains to be seen, but at present the two aforementioned levels offer up a nice risk/reward scenario for short-term range traders.
Despite the day’s action so far, the momentum will likely be with litecoin heading into the weekend. Fundamental bias has favored cryptocurrency over the last few days, with reports of strong mining demand compounded by KnCMiner reporting it had sold $2 Million worth its brand new litecoin mining rig “The Titan.” Conversely, negative sentiment in bitcoin should weigh on the most valuable digital, as alleged creator of the currency denies involvement and seeks legal protection from loss cases, and reports of Mt Gox founders finding 200,000 “lost” bitcoins rake up memories of the recent scandal.
A close above in-term resistance at 0.02852 would hint at gains, with an initial target at 0.02938, previous support. Beyond that, look for gains to March 19 resistance at 0.02938. A particularly strong day would bring the same day’s highs into play at 0.03053, but this is unlikely given the muted morning session action.**relatedarticle**
A close below in-term support would fly against the fundamental bias, but in this unpredictable pair is not impossible. The day’s momentum is so far bearish, and this could continue into the afternoon. In this scenario, look for an initial downside target at early March resistance of 0.02631. Beyond that, same day support at 0.02610 would come into play.
Keep in mind that any further news coming out as the US session opens could spark some volatility.
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