Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be taken as funding recommendation
Litecoin’s bulls have been aggressive since its worth fell to a low of $105 on 22 July. For the reason that aforementioned drop, nevertheless, northbound strain has held regular and pushed the worth to above $140 for the primary time in 24 days. Now, some technical challenges gave the impression to be current at a key resistance zone, however these may give rise to a really perfect purchase entry.
On the time of writing, Litecoin was being traded at $143.5, up by 1.4% during the last 24 hours.
Litecoin 4-hour Chart
Supply: LTC/USD, TradingView
Litecoin has largely traded throughout the confines of an ascending channel since falling again into its demand zone of $105-$114 on 22 July. The regular uptrend noticed the worth shut above its 4-hour 200-SMA (inexperienced) for the primary time since 19 Could. This was an essential improvement that pumped additional bullish sentiment into the market.
The following resistance zone stood at $146-$150 and a hike above this space would set off a breakout from LTC’s channel. Nevertheless, with Bitcoin retracing barely on its hourly chart, destructive sentiment may spill into LTC’s market earlier than it heads north. The worth may head in direction of the decrease trendline of the sample and an in depth beneath the half-line ($143) would validate such an consequence.
Reasoning
The Relative Energy Index has persistently discovered help at 50-55, sustaining its place in bullish territory resulting from fixed shopping for strain. Whereas this was definitely a constructive, the previous few periods did spotlight a little bit of a bearish divergence.
Furthermore, the Superior Oscillator made decrease peaks and implied a slight dip in bullish momentum. If these elements come into play, a retracement may very well be on the playing cards transferring ahead. The On Stability Quantity additionally famous a downtick as promoting strain crept into the market.
Nevertheless, its general development was nonetheless bullish, one thing that negated the possibilities of a pointy sell-off. If the worth does transfer south and in direction of the decrease trendline, a really perfect purchase entry may be positioned at $138 – An space that additionally clashed with the Seen Vary’s POC.
Conclusion
Litecoin’s mid-term trajectory may be anticipated to stay bullish, however a short-term dip is feasible. A transfer beneath $143 would heighten the possibilities of a pullback in direction of the decrease trendline of the sample. In such a case, merchants can go lengthy at $138 in an effort to make the most of LTC’s subsequent leg upwards.
