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Saturday's Litecoin rose more than 11% against the US dollar, setting a new peak in 2019.
The liteco-dollar rate set an intraday high at $ 37.539 on a rebound from support to the upward trendline in the short term. The "silver digital" cryptocurrency since December 27th was consolidating within a very narrow range, just like its peers inside the crypto-board. The renewed sentiment came three days after OKEx, a famous exchange of cryptocurrencies, launched ethereum and litecoin perpetual swap.
On the day of the announcement, litecoin attempted a direct rally that touched about $ 34.962. Ethereum, like litecoin, also scored an impressive upside on the same day, making it clear that traders have become optimistic about OKEx news. Now the impact of the announcement may finally vanish when litecoin will exceed its intermediate upside target – at least, basically, as happens whenever rallying occurs on the cryptography market. But as price action is suggesting to play technically, let's find out.
Technical analysis of the Litecoin price
The price of litecoin is forming a model structure defined by an ascending triangle. A broader view of the model also reveals the completion of a reverse head and shoulder pattern with $ 34,962 acting as the neckline and $ 37,539 as an intermediate breakout goal. Both models of the model indicate a decent accumulation scenario on a 4-hour chart, as the price of litecoin is also tending to above the moving average of 50 and 200 periods.
At the time of printing, litecoin forms a red candle as a sign of a pullback scenario in the next few hours. If this were to happen, a new test of the lower ascending trend line of the triangle would be probable. It could be a fair short opportunity to the line, which could be extended further to the 200-period moving average (represented in red) if the pullback action extends.
An imminent break above $ 37,539 will determine the direction of the next upward move, which could be around $ 44,961, the resistance level since November 15, the day the bitcoin money was split. It could be a good long opportunity for day traders who keep their stop loss 1 pip below the level from which they will enter their bullish position. A further breakout and all eyes should fall to $ 50, a confident psychological goal.
The indicator of the moment RSI suggests a withdrawal scenario. In an ideal situation, we could see litecoin consolidate between $ 34.962 and $ 37.539 as bulls await another round of accumulation.
Shutterstock foreground image. TradingView Charts.
