Litecoin: How a potential dip might present an ideal buy entry for traders


Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be taken as funding recommendation

Litecoin’s bulls have been aggressive since its worth fell to a low of $105 on 22 July. Because the aforementioned drop, nevertheless, northbound stress has held regular and pushed the worth to above $140 for the primary time in 24 days. Now, some technical challenges gave the impression to be current at a key resistance zone, however these may give rise to an excellent purchase entry.

On the time of writing, Litecoin was being traded at $143.5, up by 1.4% over the past 24 hours.

Litecoin 4-hour Chart

Supply: LTC/USD, TradingView

Litecoin has largely traded inside the confines of an ascending channel since falling again into its demand zone of $105-$114 on 22 July. The regular uptrend noticed the worth shut above its 4-hour 200-SMA (inexperienced) for the primary time since 19 Might. This was an necessary growth that pumped additional bullish sentiment into the market.

The subsequent resistance zone stood at $146-$150 and a hike above this space would set off a breakout from LTC’s channel. Nevertheless, with Bitcoin retracing barely on its hourly chart, detrimental sentiment may spill into LTC’s market earlier than it heads north. The worth may head in the direction of the decrease trendline of the sample and a detailed under the half-line ($143) would validate such an end result.

Reasoning 

The Relative Power Index has persistently discovered help at 50-55, sustaining its place in bullish territory as a result of fixed shopping for stress. Whereas this was definitely a optimistic, the previous couple of classes did spotlight a little bit of a bearish divergence.

Furthermore, the Superior Oscillator made decrease peaks and implied a slight dip in bullish momentum. If these components come into play, a retracement could possibly be on the playing cards transferring ahead. The On Steadiness Quantity additionally famous a downtick as promoting stress crept into the market.

Nevertheless, its total pattern was nonetheless bullish, one thing that negated the possibilities of a pointy sell-off. If the worth does transfer south and in the direction of the decrease trendline, an excellent purchase entry might be positioned at $138 – An space that additionally clashed with the Seen Vary’s POC.

Conclusion 

Litecoin’s mid-term trajectory might be anticipated to stay bullish, however a short-term dip is feasible. A transfer under $143 would heighten the possibilities of a pullback in the direction of the decrease trendline of the sample. In such a case, merchants can go lengthy at $138 with a purpose to benefit from LTC’s subsequent leg upwards.



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