Disclaimer: The findings of the following article are the sole opinion of the writer and should not be taken as investment advice
The cryptocurrency market has been witnessing a wave-like movement. After the rally was stopped in the Bitcoin market, the altcoins also witnessed downtrends. Litecoin has also been witnessing continuous buying and selling among traders, giving a chance to reap marginal profits
At press time, Litecoin was being traded at $72.16, while its market cap remained at $4.74 Billion.
Litecoin 1-hour chart
Source: LTC/USD on TradingView
The above hourly chart of Litecoin was noting a price rise enclosed in an ascending channel. As the price moved upwards, there was selling pressure in the market. This selling pressure offered an opportunity to set a short position to reap profits.
Reasoning
The price of LTC was facing resistance at $72.62, and it already returned back from this point, at press time. The Bollinger Bands were indicating rising volatility in the market, along with it the market noted a level of bullishness. However, as push and pull continue in the market, the price may experience a minimal drop in price.
This was also affirmed by the Relative Strength Index. the RSI was also heading towards the overbought zone but met with resistance. The signal was pointed lower which meant there could be a drop in the price of LTC, as the signal approached a level of equilibrium. Meanwhile, the support remained strong at $68.52.
Positions
Entry for a short position: $72
Take Profit: $68.51
Stop Loss: $73
Risk/Reward Ratio: 2.84
Conclusion
Before rising further within the ascending channel, LTC may witness its price fall. This could be an opportune time for traders to open a short position at $72 and make a profit at $68.51. The price may further notice a rise as the overall trend remained a bullish one.
