Litecoin is accumulating more gains, pushing the price up by 3.39 percent to $3.050.
Significantly higher gains can come to Litecoin, helped majorly by Bitcoin in the future sessions. But today, let us focus on what the technical indicators and the price action are suggesting.
Litecoin Chart Structure – With the above-stated gains, Litecoin has taken a step closer to the downward sloping Resistance (marked in the chart above), which as of today, comes in at around $3.400.
Moving Average – Another factor which will pressurize Litecoin as it heads upwards is the 30-day simple moving average of $3.2580. Therefore, the region between $3.250 and $3.400 can act as the resistance zone for the cryptocurrency.
Moving Average Convergence Divergence – While in the negative territory, MACD is fast widening the gap with Signal Line, thereby leading to hefty gains in the Histogram. The latest values of MACD, Signal Line and the Histogram are -0.2112, -0.2944 and 0.0832 respectively.
Money Flow Index – The MFI has hit the highest level of the month at the present value of 56.3637.
Relative Strength Index –The 14-day RSI is surprisingly fairly weak at 45.9418 even as Litecoin posts good gains.
The recent rebound in Litecoin is completely sentiment-driven. And by sentiment, I mean the sentiments in the Bitcoin market. The positivity in the Bitcoin market is aiding the rise in Litecoin markets and will continue to do so until it hits its ceiling at the mentioned resistance zone of $3.250-3.400.
Market participants are best advised to trade at only the extreme levels to minimize the loss potential. Do not expect high volatility and big price spikes as Litecoin is most likely to continue with its steady rise.
Traders with a low-risk appetite should not trade at current levels because the stop-loss in the present situation will be very deep, thereby making the risk-reward unfavorable.