Technicals Suggest LTC Could Rise 10% in the Next Few DaysIn the past 48 hours, BINANCE:LTCUSDT has maintained its bullish momentum, reflecting a strong uptrend on the 4-hour chart. Closing prices over the last several candles have showcased the resilience of LTC, with recent figures ranging between $79.92 and $84.16.
The 9 Exponential Moving Average (EMA) for LTC has been consistently above the 20 EMA, indicating a bullish trend. The 9 EMA has shown an upward trajectory, affirming the prevailing bullish sentiment. Similarly, the 20 EMA has demonstrated a positive slope as well, further solidifying the uptrend.
Moreover, the Moving Average Convergence Divergence (MACD) histogram has exhibited bullish momentum, with values consistently above the signal line. The MACD histogram has also progressively increased in the last two days, highlighting strengthening bullish momentum. This suggests a continuation of the current upward trend in the Litecoin price action.
The Relative Strength Index (RSI) for LTC has displayed overbought conditions, indicating heightened buying pressure. Despite occasional fluctuations, RSI values have remained relatively high, with recent readings ranging between 64.36 and 78.32. While this signals a potential for correction, it also underscores the prevailing bullish sentiment in the market.
Considering potential price movements, investors should closely monitor key support and resistance levels. The $76.32 mark serves as immediate support, followed by additional support level at $73.02. These levels may act as critical areas for price rebounds or potential entry points for long positions.
Potential Trade Approaches
For a long trade, investors may consider entering once the Litecoin price breaks above the resistance level at $84.16. This breakout could signify a continuation of the bullish momentum. Set the initial profit target at a conservative level, such as 10% above the entry point, around $92.58. However, if the trend remains strong, consider trailing the stop loss to protect profits while allowing the trade to run. Alternatively, if the price falls below the 9 EMA or encounters resistance at higher levels, consider exiting the trade to lock in gains.
For a short trade, wait for confirmation of a bearish reversal pattern or a rejection near the recent resistance level at $84.16. This could include a bearish engulfing candlestick pattern or a failure to break above the resistance level. Set the initial profit target at a conservative level, such as 5% below the entry point, around $79.95. However, if the bearish momentum intensifies, consider trailing the stop loss to protect profits while allowing the trade to run. Additionally, if the price crosses above the 9 EMA or encounters support at lower levels, consider exiting the trade to limit losses.
