The gone-by weekend proved to be bearish for both Litecoin and Bitcoin. While Bitcoin suffered an approximately 2 percent decline, Litecoin too suffered a 1 percent loss. But the magnitude of the volatility in the latter overshadowed that in the former.
Litecoin is presently trading at $3.943, down 0.93 percent since Friday.
Things are still relatively good in Litecoin than in Bitcoin, and may become even better if Bitcoin sustains at the current level or rebounds quickly.
Take a look at the latest technical considerations of the daily LTC-USD price chart below.
Litecoin Chart Structure – In the previous technical analysis Retests the Support, I had advised that market participants go long in Litecoin on dips. Yesterday, Litecoin jumped more than 10 percent intraday to touch $4.460, much closer to the $4.500 target earlier predicted.
However, as Bitcoin cracked the $260-floor, all these gains were erased and bulls came under intense selling.
Moving Average Convergence Divergence – The MACD is still negative at -0.0825, the Signal Line is at -0.0685, and the Histogram is at -0.0140.
Momentum – The abrupt pulldown in the Litecoin price has dented the underlying bullish momentum. The latest Momentum reading is -0.1989.
Money Flow Index – The MFI reading is 32.8940.
Relative Strength Index – The underlying strength reading is only marginally changed at 47.3650.
Litecoin doesn’t look weak to me at the current juncture. It may make more attempts to scale higher levels with even little support from the Bitcoin markets. It may, in fact, be forming a base to stage a larger rally in the coming sessions, but all of the hard work can be undone if Bitcoin breaches $256 and skids to $240.
As of now, stay long in Litecoin and accumulate on dips for targets of $4.350 and $4.500.
Keep tracking the Bitcoin markets for better trading decisions.