The long call given in previous Litecoin price technical analysis Breakout has certainly paid off big. Litecoin price has jumped from $2.887 to hit an intraday high of $3.137, a huge addition of 8.66 percent. Even now, the momentum is looking very strong as Litecoin threatens to take out another key resistance level.
Litecoin is currently trading at $3.110.
Technically, Litecoin remains on a very strong footing but it runs a major risk as well – the risk of being quickly overbought. Read the latest values of the technical indicators below for further clarity.
Litecoin Chart Structure – After a strong breakout from the trendline connecting the previous two peaks, Litecoin is aiming for huge gains. As can be seen from the daily LTC-USD price chart above, it has already pierced the 150-day simple moving average of $3.0194 and is challenging the 50-day SMA of $3.0809 at present.
Moving Average Convergence Divergence – MACD is disconnecting swiftly from Signal Line to push Histogram higher. The latest values of MACD, Signal Line and Histogram are -0.0230, -0.0734 and 0.0503 respectively.
Momentum – The Momentum value has shot to the highest value of the month i.e. 0.2621.
Money Flow Index – The MFI has soared to a yet another high of 69.8269. Above 75, overbought sentiments will take over Litecoin.
Relative Strength Index – The RSI value has adjusted according to the bullish momentum and is now at 60.0800. Expect a cautious approach if this value goes past 70.
The underlying momentum or the strength is very positive at the moment. Litecoin can scale greater highs if the bullish ride extends. Long traders should consider booking profits as valuations get heated.
Word of caution: Do not get tempted by escalating prices to enter at high-risk levels. Wait for a dip now or risk losing money.