Disclaimer: The findings of the next article are the only opinions of the author and shouldn’t be taken as funding recommendation
With Bitcoin reaching new highs, the altcoin market can be marching alongside. Nevertheless, the tempo at which the altcoin market rallies will not be the identical as Bitcoin’s. With peaks famous lately, the Litecoin [LTC] chart was witnessing a falling value. At press time, the worth of the digital asset was $126.8. This has been a degree of consolidation and a value swing could possibly be anticipated as soon as once more.
Litecoin one-hour chart
Supply: LTC/USD on TradingView
The above chart of LTC has been descending over the previous couple of days. The worth of the digital asset famous a neighborhood peak on 27 December at $139.84. After a wave-like motion, it touched $135 and dropped from this level. Given the present momentum out there, there could possibly be a quick upwards pull, however the selling-pressure may emerge and induce one other fall. This could possibly be a possibility for a brief place.
Reasoning
The value of the digital asset has been transferring sideways alongside the $126 value stage. The Relative Power Index has been near the oversold zone and has been attempting to maneuver in the direction of equilibrium to stabilize the worth. Promoting stress may push the worth of LTC beneath $122.
The Chaikin Cash Circulation has been beneath the zero-line, which indicated that the cash was flowing out of the market. Because the digital asset has been beneath the zero-level, the promoting stress has continued out there.
Positions
Entry: $125
Cease-Loss: $126.76
Take-Revenue: $120
Danger-to-Reward: 2.33
Conclusion
The Litecoin market has been seeing a brief promoting stress pressure its value beneath the $130-level. The downwards trending value could witness added stress from sellers because the market appeared bearish. This might pose a shorting alternative for merchants to take a revenue at $120. Nevertheless, this place could take a little bit longer to appreciate, after a quick spurt in worth.
