ForexMinute.com — After strictly trending sideways for days, Litecoin broke above the identified level of resistance near 1.910 fiat, rising around 12% over the weekend only to find a little routine correction near the intraday peak level 2.038 fiat. The said breakout appear right after Bitcoin’s attempt to establish a medium-term bullish bias that seemed to have impacted Litecoin as well, its closest associate.
Litecoin 4H Chart
The 4H BTC-e chart above displays Litecoin in a comfortable — and extended — bullish bias. The price is visibly a way too above its 50-, 100- and 200-h SMAs, and the 4H RSI is also trending above 70 — clearly an overbought zone. The MACD curve is also trending a way too above the normal line, with its head pointed sideways indicating the possible price correction that is about to appear.
As the bullish bias continues to remain, we are emphasizing huge on our the upside levels for now. Like every time, we have drawn some potential risk levels, indicating the ideal exit/entry position and ensuring a decent risk assessment exercise. Here we have price in mid range between the newly formed in-term support and resistance near 1.910 and 2.038 fiat, respectively. We’ll however be keeping our eyes on the in-term resistance and a temporary support line near 1.938, due to the prevailing upside bias.
It would be safe to say that price will attempt to cross above 2.038, as it has tried to do in last 24 hours. However, a strong selling pressure near this level will ensure a strong pullback towards 1.938. But if somehow price manages to sail above the aforesaid peak point, it would instantly validate 2.143 as its primary upside target — which was attempted last March.
On the downside, a run towards 1.938 would instantly bring 1.910 fiat back in sight. Indeed, it would open some decent short positions with a stop somewhere around 1.982. However, we recommend you to avoid placing bets below the in-term support at this point of time.