[ad_1]
Disclaimer: The results of the following article attempt to analyze Litecoin’s emerging short-term patternsforward market and its impact on the price
The value of the cryptocurrency commonly dubbed “digital silver” got a boost after climbing from $ 58 to $ 66 within hours. In fact, Litecoin’s price, for a while, moved sideways in the charts, despite Bitcoin’s rally. However, this trend has changed in the past few days. While the LTC market underwent a wave of corrections soon thereafter, the last trading candles on the hourly chart indicated bullish resistance.
At the time of writing, the seventh-ranked cryptocurrency on CoinMarketCap’s charts was trading at $ 64.40.
Litecoin 1 hour chart
Source: LTC / USD on TradingView
According to Litecoin’s hourly charts, the cryptocurrency has been on a downward trend in the past few hours, a development that can be inferred as a breakout from the ascending channel. Although the ascending channel formation was seen as an uptrend for the digital asset, the following correction reversed this trend.
With the price of the cryptocurrency slipping on the charts, this may be the best time to enter a short position.
Reasoning
A significant degree of selling pressure was building when the crypto asset exited its long consolidation phase and rose. This gave traders the opportunity to use the correction profit.
This aforementioned selling pressure was highlighted by the Bollinger Bands as the indicator still highlighted the volatility of the existing market. Also, the signal line has taken a position above the price candles – A sign of the downward price trend.
The Relative Strength Index also experienced the sudden surge in price when it was pushed into the overbought zone. When the value fell, the RSI also trended lower. At the time of writing, it was closer to the level of equilibrium, where buying and selling pressures were equalized.
Positions
Admission: $ 64.65
Stop loss: $ 65.12
Take-profit: $ 63.09
Risk-reward: ~ 3.25
Conclusion
Litecoin’s price chart highlighted the evolution of selling pressure in the market. Here, traders can take advantage of the drop in the LTC price by entering short positions and making a profit at $ 63.09, a support level that could be tested soon given the market performance.
