Litecoin is currently trading at $2.776, down $0.014 or 0.50 percent. The slow and muted action has taken many by surprise considering the highly volatile nature of this cryptocurrency.
The cryptocurrency markets, including Bitcoin and Litecoin, could be awaiting the outcome of the ongoing Fed meeting in which the Chair Janet Yellen is expected to raise the interest rates for the first time since 2009 or at least provide some helpful insights into the timing of this action. The outcome of this meeting is expected to shake up all the financial markets over the world.
Having said that, it is important to know the levels to watch out for and the latest technical structure.
Litecoin Chart Structure – Since there is no major move visible on the daily LTC-USD price chart until now, market participants should keep the 200-day SMA of $2.6014 on a close watch. The level has supported Litecoin twice in the recent period, and a breach of this support could spell a huge fall.
Moving Average Convergence Divergence – The Histogram is sustaining in the positive region helped by the lesser negative value of MACD over the Signal Line. The current values of MACD, Signal Line and Histogram are -0.1445, -0.1662 and 0.0217 respectively.
Momentum – The Momentum indicator reading of -0.2330 is indicative of the underlying bearishness.
Money Flow Index – The MFI can be seen reaching for higher levels even as price remains under pressure. Generally, when MFI reaches overheated levels when price remains flat or falls, it signals of an upcoming correction.
Relative Strength Index – The RSI reading has sunk even lower to 37.8992.
Traders should wait for the outcome of the US Fed meeting before making a trade. A knee-jerk reaction cannot be ruled out following this meeting. Go short if the 200-day moving average is breached.