ForexMinute.com — After rallying smoothly in last few days and establishing an intraday peak near 5.083, the Litecoin price action has reversed violently in over the last 24 hours. A part of these movements are influenced by Bitcoin, whose very own price has fallen to the verge of testing the range bottom line.
At this point of time, we are seeing Litecoin serving 4.624 fiat as its in-term support level, while sighting 4.819 fiat as its in-term resistance level. Our intraday breakout strategy will be based on these two levels only. Let’s have a technical lookout before jumping on the analysis part:
Litecoin 4H Chart
The 4H BTC-e chart is displaying Litecoin maintaining its overall bullish bias, despite after facing a volatile sell-off in past 24 hours. The 4H RSI has likewise slipped to 54-55 range and the MACD indicator, while maintaining its positive bias, has sinked under the signal curve. All these indicators jointly points to a near-term selling scenario in the market, for the bearish momentum seemed to have slowed down and the bullish one is not taking over — not by the press time.
We, therefore, are cautiously awaiting for a near-term breakout scenario before placing our position towards either directions. At first, we will definitely be looking for Litecoin to break above the in-term resistance level to validate 4.979 fiat as our medium-term upside target. On this trade, our stop loss will stay near 4.738 fiat to exit the market in case the bias backfires.
Conversely, a run down towards the in-term support level would have us put a short towards 4.363 fiat as our primary downside target. A further downside momentum would also validate 4.255 fiat as an immediate short target. On these trades, our stop loss will stay near 4.695 fiat.