ForexMinute.com — After a massive rally and an equally exhilarating crash, Litecoin price is shockingly moving sideways from over the last 24 hours. The volatile has dropped and showing no signs of movement-worthy trades at this time. Consequently, the chances of earning attractive scalp profits seems a little unlikely today. We will though discuss the levels we’ll be keeping our eyes on to churn out the best possible returns. Have a look at the chart first:
Litecoin 4H Chart
The 4H BTC-e chart above displays Litecoin in a bearish bias, for the price has definitely slipped below its 50H SMA, while is lazily testing the 100H SMA alongside. The 4H continues to stay flat near 45 — a clear selling area, while the MACD indicator is also trending inside a negative bias. All these technical indicators although point to a bearish bias, but for the near-term is definitely a neutral one.
As you can see, we are currently looking for Litecoin to break above the current in-term resistance line near 5.260 to establish a near-term bullish bias. This price action further ensures to validate 6.200 as our primary upside target. On this trade, a stop loss somewhere around 5.000 will ensure a timely exit in case of a bias reversal.
If we get a pullback upon testing the resistance point, we will be entering short position towards the temporary support line near 4.856 fiat by keeping our stop near 5.260 to keep our risk parameters defined. A further break below this line will bring back the in-term support level near 4.266 back in sight.