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Disclaimer: The results of the following article are the sole opinion of the writer and should not be taken as investment advice
The cryptocurrency market has seen a swaying movement. After the rally was halted in the Bitcoin market, altcoins also witnessed a downtrend. Litecoin has also witnessed continued buying and selling among traders, giving the opportunity to reap marginal profits
At press time, Litecoin was trading at $ 72.16, while its market cap had remained at $ 4.74 billion.
Litecoin 1 hour chart
Source: LTC / USD on TradingView
Litecoin’s hourly chart above was noticing a price increase encased in an ascending channel. When the price went up, there was selling pressure in the market. This selling pressure provided an opportunity to set up a short position to reap profits.
Reasoning
The LTC price was facing resistance at $ 72.62, and has already moved back from this point as of press time. The Bollinger bands indicated increasing volatility in the market, along with it the market noticed a bullish level. However, as the push and pull continues in the market, the price may experience a minimal price drop.
This was also stated by the Relative Strength Index. The RSI was also heading towards the overbought zone but met resistance. The signal was pointed lower, which meant that there could be a drop in the price of LTC, as the signal approached an equilibrium level. Meanwhile, the support has remained strong at $ 68.52.
Positions
Entry for a short position: $ 72
Take Profit: $ 68.51
Stop Loss: $ 73
Risk / return ratio: 2.84
Conclusion
Before rising further within the ascending channel, LTC could see its prices drop. This may be an opportune time for traders to open a short position at $ 72 and make a profit at $ 68.51. The price may notice a further increase as the overall trend has remained bullish.
