Technical Analysis by Tina Hamilton January 7, 2019
Litecoin on Saturday jumped high with an increase of 11 percent against the US dollar, setting a recent and fresh 2019 peak.
The Litecoin-to-dollar rate built up an intraday high at $37.539 on a bounced from close trendline support. The “digital silver” cryptocurrency since December 27 was combining within a strict range.
The revised buying temptation came three days after OKEx, a public cryptocurrency exchange, supported ethereum and Litecoin swaps.
Upon the announcement of the declaration, Litecoin had tried a clear rally that failed near $34.962.
Ethereum, like Litecoin, also performed amazingly around the same time. This was enough indicator that traders went bullish after knowing the OKEx news.
The effect of the declaration could, in the end, vanish as Litecoin overgets its temporary bullish target. However, how the price action is indicating to play, let us know.
The Litecoin cost is shaping a structure characterized by a climbing triangle. A broader pattern or perspective also reveals the completion of an inverse head.; the shoulder pattern acting as a neckline with $34.962 and 37.539 as the temporary breakout target.
Both the patterns or structures point to a tolerable situation on a 4H diagram, as the Litecoin cost is showing an upward trend over its 50 moving average and 200-period moving average.
At the point, Litecoin was reaching a red scenario which indicates that the investors would soon start pulling back from the market.
If that happens at all, it would be very likely to retest the lower climbing trendline of the triangle.
It could be an excellent small chance towards the line, which could be extended further towards the 200-period moving average (portrayed in red) if the pullback activity expands.
An approaching breakout above $37.539 will manage the course of the following upside move, which could be towards $44.961, the resistance level from November 15, the day bitcoin cash got split.
It could be a decent big chance for day investors giving they keep up their stop-loss 1-pip beneath the dimension from where they will enter their upside position. A further breakout and everyone’s eyes would fall on $50, a bullish psychological target.
The RSI pointer is indicating a pullback situation. In a perfect circumstance, we could see Litecoin somewhere in the range of $34.962 and $37.539 as bulls anticipate another accumulation round.