Yes, that is the advice I have for market participants involved in Litecoin trading. Litecoin is currently at a juncture where if it begins its upward climb, it can give high returns; but if it falls, then there is a roughly 25 percent downside. Remember my September price target – $2.000?
Trading at $2.790, Litecoin is trying to limit its losses, however, it cannot help much since the Bitcoin markets are under tremendous pressure. Bitcoin is now at $230, but if it closes below $220 on a weekly basis, then a major collapse will ensue which will adversely affect Litecoin as well.
Below are the latest technical considerations taken from the daily LTC-USD price chart, and to be fair, they only present a mixed, inconclusive picture.
Litecoin Chart Structure – Analyzing the chart does not provide helpful clues since Litecoin hasn’t really moved since the beginning of this week. It remains much muted and awaits a signal from Bitcoin markets for the future course of action.
Moving Averages – The 20-day simple moving average of $2.8383 is capping the gains while the next strong support will be the 200-day simple moving average of $2.5968.
MACD – The MACD and the Signal Line are narrowing their difference which is leading to shrinkage in the value of Histogram. The MACD is now at -0.1488, the Signal Line is at -0.1737 while the Histogram is at 0.0249.
Money Flow Index – The MFI is surprisingly showing an uptick in its value which is now at 59.7492.
Momentum – The Momentum indicator has recently plummeted into the negative waters and its latest value is -0.2000.
Relative Strength Index – The RSI maintains its bearish bias as the reading remains suppressed below the 40-mark. The value is 38.5382.
Market participants do not have to trade Litecoin at current levels, and should rather be sitting on the sidelines. Wait for a better trading opportunity before entering the market.