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Disclaimer: The results of the following article attempt to analyze Litecoin’s emerging short-term patternsfutures market and its impact on price
Litecoin’s price has risen with every passing hour and reached a value of $ 74.18 at press time. The observed surge in the Bitcoin market has been a driving factor for Litecoin and the remaining altcoin market. However, this push has also given rise to a bearish trend in the market, which could result in a correction of the current price.
Litecoin 1 hour chart
Source: LTC / USD on TradingView
Litecoin’s hourly chart above noted that its value had fallen below the support at $ 62.26, however, this was only a short deviation. The price immediately bounced higher and broke through the resistance at $ 64.61 and reached $ 74 without much hesitation. This price increase took place in a way that gave rise to an upward channel.
The formation of an ascending channel marked a turnaround. The current bull market has painted signs of reversal and the possibility of opening short positions.
Reasoning
To start with the moving average of 50, although it was below the candles, the gap was wide. This suggested a possible correction that would bring the price of the digital asset back to normal.
Another indication was the relative strength index. The RSI has been in the overbought zone for more than a day. While it has occasionally moved out of the overbought zone, the position so close to the zone indicated that the asset was overbought and selling pressure may be imminent. Currently, below the overbought zone, but heading towards it, could mean temporary buying pressure that could push the LTC price a little higher, but it will soon change.
Positions
Admission: $ 74.50
Stop loss: $ 75.85
Take-profit: $ 70.06
Risk-reward: ~ 3.26
Conclusion
The value of LTC could reach $ 74.50, which could be a good entry point and a drop could lead the value to reach at least $ 70.02. the upward trend of the market may remain despite this correction.
