The rebound in Bitcoin is supporting Litecoin as well. After slumping to a new monthly low, Litecoin is extending its gains to $3.534, up 1.29 percent.
I think that a further rise in Litecoin will be a good opportunity to go short.
Take a look at the technical considerations of the daily LTC-USD price chart.
Litecoin Chart Structure – If we take a look at the chart above, it can be safely said that Litecoin is in a strong downtrend. With Bitcoin still weak, it is proving hard for Litecoin to unshackle from this range. The resistance according to the above trend comes in at around $3.850.
Moving Average Convergence Divergence –Even though the price is rising, there is no improvement in the underlying momentum reading. The MACD has, in fact, dropped even lower to -0.1697 while the Signal Line is at -0.1118. The Histogram is indicating the lingering bearishness with a value of -0.0579.
Momentum – Another aspect of this advance revealing that it could be a trap is the declining Momentum reading. The Momentum indicator is flashing