Litecoin Price Technical Analysis for 28/7/2015 – Positive Bias Remains – NEWSBTC

Litecoin has added another 6% in gains after amassing 22% over the weekend. Now at $4.849, Litecoin may look forward to reaching its next target of $5.200.

The technical indicators and the price action remain highly positive for Litecoin, however, this is mainly due to the leading cryptocurrency Bitcoin which looks poised to cross $300.

Litecoin price chartLitecoin price chart

Image: https://www.tradingview.com/x/2okmejHu/

Litecoin Chart Structure – If we look at the action of the past 3 days, we find that Litecoin traded in a tight range of $4.360-4.880. But the latest action has pushed the price to a high of $4.900, indicating that the bulls are increasing the pressure.

Moving Average Convergence Divergence – MACD maintains its lead over the Signal Line and keeps the Histogram afloat. MACD currently reads 0.1714, Signal Line has a value of 0.0890 and the Histogram has a value of 0.0823.

Momentum – The Momentum has also advanced to 0.9775.

Money Flow Index – Another strong point is the jump in MFI to a 2-week high of 58.1889.

Relative Strength Index – The 14-day RSI value of 58.2268 is representative of the strong bullish undertone.

Conclusion

Technical indicators and the price chart suggest that Litecoin be bought at current levels. However, I must mention this is subject to condition that Bitcoin must cross above the resistance level of $300. If Bitcoin fails to cross the hurdle and reverses the immediate bullish trend, then expect a decline in Litecoin as well.

Long traders can consider building trading positions at current levels or on dips for a target of $5.200 by maintaining a stop-loss below $4.360.

The rise in the cryptocurrency value can also be attributed to the ongoing Greece crisis which has taken a turn for the worse after Greece’s Ex-Finance Minister Yanis Varoufakis admitted that he had a ‘contingency plan’ for exit from the Eurozone. The situation has worsened as the creditors have now demanded implementation of stricter reforms in exchange for the funding.

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