With very little fundamental market moving news over the weekend, the altcoin space will likely be relatively quiet throughout the Monday sessions. The lack of news means the price of litecoin, namecoin and dogecoin will likely be dictated by the key technical levels as the day matures. So, what are the levels to watch?
For today’s analysis, lets take a look at litecoin. The LTCUSD has experienced considerable volatility over the past few days, in stark contrast to the relatively quiet week across the cryptocurrency space. Having topped out at 14.235 on April 16, the pair dropped sharply to support at 12.627 before the day closed. A small recovery followed, but the decline continued on April 17, and heading into the weekend, to carve out fresh weekly lows and find support at 11.425.
The 200 period SMA offers up an intraday bearish technical bias, and a close below it would present some nice downside targets, as dictated by recent action. Look for a break of in term support at 12.205 to validate 12.008 as an initial target. A lose below this level would suggest further intraday downside, with aforementioned lows at 11.425 the initial goal.
Recent volatility suggests however, that the implied bearish technical bias may quickly reverse. In term resistance at 12.627 is the level to watch, with a break above validating an initial upside target of weekend highs at 12.984. Beyond that, look to Wednesday resistance at 13.818 as a secondary target, with weekly highs at 14.235 presenting a final intraday upside goal.
Again with reference to the volatility, make sure you impose strict risk management rules when speculating in the cryptocurrency space. With such extreme uncertainty surrounding the future of altcoins, sentiment shifts can be sudden and cause sharp swings in the value of the market constituents. With this in mind, keep stops tight, trade with the market and take the key levels as they come.
To contact the reporter of this story; Samuel Rae at Samuel@forexminute.com