Litecoin is trading on a bearish note as it loses 1.07 percent since yesterday to trade at $2.947.
But, let us quickly visit the latest price action, the technical indications and finally, reach a conclusion which may help traders during weekend trading.
Litecoin Chart Structure – Upon taking a closer look at the daily LTC-USD price chart, one can find that for the past 3 sessions, Litecoin has been trading in a contracting range where the upsides have been shrinking while the base remains the same.
The range has narrowed considerably and a breakout is well on its way. There are better chances of an upside breakout during the weekend. However, if the base is violated, expect a decline to $2.830, at which another strong support will come into effect.
Moving Average Convergence Divergence – The Histogram remains positive with a value of 0.0336. The MACD and the Signal Line are taking their time to erase the losses – this is another technical reason which is pulling down Litecoin. MACD has a value of -0.0146 while Signal Line has a value of -0.0482.
Momentum – Momentum is in a strong uptrend as has been marked in the chart above. The value is 0.1368, and any dips to the trendline should be used to go long in Litecoin.
Money Flow Index – The MFI is witnessing a severe depreciation and has dropped to 59.6992.
Relative Strength Index – The RSI has turned neutral once again as minor pressure shakes the market. The current value of RSI is 50.6196.
Litecoin is still in an uptrend and there is a high probability that an upside breakout may occur during weekend trading. Use dips to accumulate Litecoin by placing a tight stop-loss just below $2.830.
Also, keep track of the Bitcoin market. It looks steady as of now and may support Litecoin’s price rise.