After forming a near-term base near $3.820, Litecoin has registered a steady rise of 1.48% since yesterday. Litecoin is currently trading at $4.100 and has outperformed Bitcoin which has declined to a make or break juncture.
Speculations are running rife that Greeks are turning to cryptocurrencies in the wake of ongoing crisis, but if the people vote to stay in the Eurozone with austerity measures, I am expecting this new found craziness to end abruptly.
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Technical indicators laid over the 240-minute LTC-USD price chart point to a favorable scenario for the bulls.
Litecoin Chart Structure – Litecoin can be seen floating above $4.000 backed by unrealistic bullish expectations. The cryptocurrency is expected to face resistance near $4.270-4.250.
Moving Average Convergence Divergence – On a bearish note, MACD fails to surge above the Signal Line even as the price rises. The latest MACD and Signal Line values are 0.1840 and 0.2142. The Histogram remains depressed with a value of -0.0302.
Momentum – That bulls are continuously making attempts at maintaining their stronghold can be seen from the positive momentum reading. The latest Momentum indicator value is 0.1450.
Relative Strength Index – Another remarkable achievement for the bulls is consistently maintaining the RSI value above 60 for 4 straight sessions this week. Even presently, the RSI reading is 63.3208, which indicates that bulls are just awaiting a trigger to elevate the price significantly higher.
Conclusion
2 out of 3 discussed technical indicators point to a strong bullish undertone. The chart structure also says that Litecoin is preparing to challenge the resistance.
My advice: Since nothing has fundamentally changed for Litecoin, it does not warrant these heated levels. I am expecting Litecoin to undergo a massive cut post the Greek referendum this Sunday. Do not resort to impulse trading and sit out this week. Only aggressive traders should build light long positions with a stop-loss below $3.820.
