Litecoin presents an interesting setup

After finding its low at $40.32 in June 2022, Litecoin rose over 160% within the span of a half-year. However, since the February 2023 high at $105.69, Litecoin’s price trend has been erratic. Litecoin has been oscillating between the two converging bounds, forming an interesting setup that caught our attention. For now, we would like to stay out of the market and observe the situation. Ideally, we would like to wait for the price to approach one of the boundaries of the formation and then assess the opportunity.

Illustration 1.01

Illustration 1.01 displays the daily chart of LTCUSD. Two converging lines can be seen forming a pattern that resembles a symmetrical triangle.

Technical analysis gauge
Daily time frame = Neutral
Weekly time frame = Slightly bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

تعليق:

Litecoin rose by more than 18% within the past 24 hours and broke above the upper bound of the formation. If Litecoin manages to hold above the upper bound for two consecutive days, it will be positive. However, a failure to hold this level will be negative. The current setup offers two options. The first is going long above the bound and placing stop-loss slightly below it. The second involves going short once the price falls below the upper bound and placing a stop-loss above it.

تعليق:

With Bitcoin retracing much of its gains after the breakout, the bearish setup remains valid.

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