As expressed in Heads South, Litecoin has bounced off from near the support level of $4.360. It was earlier advised that the latest correction is a low-risk buying opportunity. Litecoin is presently trading up 1.77% at $4.650.
Market participants must also note that a bigger decline may be in store for Bitcoin, which is apparently leading Litecoin.
Interestingly, none of the technical indicators overlaid on the daily LTC-USD price chart point to bearish connotations for Litecoin. All remain firmly positive or stable.
Litecoin Chart Structure – In yesterday’s session, Litecoin continued its decline to $4.400, much closer to the said support of $4.360, before it regained its lost ground and hit $4.703 in the follow-up short covering.
Fibonacci Retracements – For a small period, the price sustained below the 23.6% Fibonacci retracement level of $4.471, but closed above it. The resistance remains the 38.2% retracement of $5.270.
Moving Average Convergence Divergence – On a positive note, MACD, Signal Line and the Histogram register values of 0.1884, 0.1285 and 0.0599 respectively.
Momentum – The Momentum indicator highlights the optimistic mood with a