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Disclaimer: The results of the following article attempt to analyze Litecoin’s emerging long-term patternsfutures market and its impact on price
The Litecoin market has peaked lately, as has most of the altcoin market. In fact, the price of the digital asset has surged close to the resistance at $ 85.10, with the same also revisiting the price levels last seen in February 2020.
With the price of the cryptocurrency testing resistance at the current level, a short position could be beneficial to market traders.
Litecoin daily chart
Source: LTC / USD on TradingView
The Litecoin daily charts attached here note that the price has appreciated since October. It met resistance around the $ 62.35 level before breaking above it in November. While the cryptocurrency price was strongly positioned at press time, the likelihood of a drop in the charts looked significant.
Reasoning
The price level has not been tested in recent times and you may have to wait before exceeding this level. Additionally, the Relative Strength Index noted that the coin had reached the overbought zone and could see a fall to equalize the buying pressure in the market.
Conversely, the Awesome Oscillator has experienced robust and rising market momentum, with the same indicating an uptrend, at press time.
Position
Resistance: $ 85.10
Support: $ 62.35, $ 42.42
Entry for short position: $ 82
Take Profit: $ 62.19
Stop Loss: $ 88.37
Risk / return ratio: 3.11
Conclusion
Litecoin’s press time charts appeared to be highlighting a good level to enter a short position, with the cryptocurrency’s price ready for the same. The chances of a correction in the Litecoin market appeared high, with indicators rising to the overbought zone and the emergence of the need to stabilize the market.
