ForexMinute.com — Despite the continuation of the prevailing bearish momentum in Bitcoin markets, Litecoin managed to hold on its support levels pretty fine. The price action, which was still acting slippery in the aftermath of Bitcoin’s crash, managed to bounce back towards testing the near-term upside levels. There is a decent possibility that Bitcoin traders hedged their funds into Litecoin.
As we enter another day of trading, we are now seeing price respecting the range we discussed in our yesterday’s intraday analysis. As marked, 4.651 fiat is still serving as the current in-term resistance level, while the in-term support level is at 4.393 fiat. The price, meanwhile is in midst of these levels. Let’s have a look:
Litecoin 4H Chart
We are currently looking for a break above the in-term resistance level to validate 4.733 fiat as our immediate upside target. A further break can bring 4.841 back in sight, a position that promises some decent profits if being accounted. On these trades, the stop loss is recommended to be near 4.575 to maintain a positive reward profile.
Looking at the other way around, failing to break above the in-term resistance level would influence the price to attempt a run towards the in-term support level. A break below the latter would have us put a short towards 4.243, our primary downside target for today. On this trade, maintaining the stop loss near 4.451 fiat would be recommended.
Speaking about the technicalities, Litecoin is displaying a near-term bearish action at press time. As you can check the 4H BTC-e chart above, the price is currently flirting with its 50H SMA trendline, and the 4H RSI has dipped below 45. The MACD indicator is right near the normal line due to recent sell-off. All these technical indicators suggest that the price action will move south in next few hours.
As we enter another day of trading, we are now seeing price respecting the range […]