In yesterday’s analysis entitled Bulls Rise, Challenge Resistances, I mentioned that Litecoin was challenging a key resistance level of $1.865. As of today, the cryptocurrency has failed to edge above this level and has come down to $1.852 as minor profit booking is witnessed.
Below has been presented the technical considerations which traders must take into account before making fresh trades or deciding on existing ones. A 240-minute LTC/USD price chart has been used to serve the purpose.
Litecoin Chart Structure – Since Litecoin is trading near the upper range of the band and refuses to retest the support, it can be said with certainty that bulls have a decisive edge over the bears.
Fibonacci Retracements – Litecoin has maintained a price band of $1.790-1.865, which correspond to Fibonacci retracement levels of 38.2% and 23.6% respectively. I am expecting the virtual currency to break out of this range in the next 72 hours, and there is a higher probability of the resistance being violated.
Moving Average Convergence Divergence – Even higher price levels have failed to arrest