Litecoin on Saturday rushed more than 11 percent against the US dollar, setting a fresh 2019 peak.
The litecoin-to-dollar rate enacted an intraday high at $37.539 on a bounce from near-term ascending trendline support. The “digital silver” cryptocurrency since December 27 was consolidating inside a confining range much like its peers across the crypto-board. The renewed buying sentiment came three days after OKEx, a well-known cryptocurrency exchange, launched ethereum and litecoin perpetual swaps.
On the day of the announcement, litecoin had attempted a straightforward rally that fizzled lean towards $34.962. Ethereum, like litecoin, also marked an impressive upside action on the same day, clarifying that merchandisers went bullish on the OKEx news. Now the impact of the announcement could eventually evaporate as litecoin overreaches its interim bullish aim – at least, fundamentally, as happens every time after hyped-up rallies in the crypto market. But how the price action is hinting to place technically, let’s find out.
Litecoin Price Technical Analysis
LITECOIN 4H CHART | SOURCE: BITFINEX, TRADINGVIEW.COM
The litecoin cost is forming a pattern structure defined by an ascending triangle. A broader view of the pattern also reveals the completion of an inverse belfry and shoulder pattern with $34.962 acting as the neckline and $37.539 as the interim breakout target. Both the pattern edifices point to a decent accumulation scenario on a 4H chart, as the litecoin price is also trending above it’s 50 and 200-period on the move average.
At press time, litecoin is forming a red candle as a sign of a pullback scenario in the coming hours. If that chances, a retest of the lower ascending trendline of the triangle would be likely. It could be a decent short opportunity towards the outline, which could be extended further towards the 200-period moving average (depicted in red) if the pullback action develops.
An impending breakout above $37.539 will dictate the direction of the next upside move, which could be supporting $44.961, the resistance level from November 15, the day bitcoin cash got split. It could be a good long moment for day traders providing they maintain their stop-loss 1-pip below the level from where they resolution enter their upside position. A further breakout and all eyes would be expected to fall on $50, a psychological bullish goal.
The RSI momentum indicator is hinting a pullback scenario. In an ideal situation, we could see litecoin consolidating between $34.962 and $37.539 as bulls await another collection round.
Featured Image from Shutterstock. Charts from TradingView.