On August 5, Litecoin was above $ 100 and touched $ 107.04. Unfortunately, Litecoin corrected as soon as it hit our initial target. The lack of a strong follow-through was an indication that suggested that bulls were exhausted. Thus, Vietincome decided to stay away from the coin until it flails bullish signals. We’re seeing those signals today.
Technical analysis shows that LTC/USD has broken out of a falling wedge when it took out the diagonal resistance of $65 on September 2nd. The breakout alleviates the heavy selling pressure that has kept the coin bearish for a couple of months.
In addition, technical indicators are suggesting that momentum has shifted to the side of the bulls. Vietincome see the daily RSI flashing a bullish divergence while trading close to oversold territory. On top of that, Vietincome spotted a bullish crossover on the daily MACD to further affirm our bullish stance.
=> The strategy is to buy as close to the horizontal support of $65 as possible. If bulls can keep the coin from falling further, we’ll likely see a bounce to initial target of Vietincome is $82.50. Above that, the next target is $100. The process may take less than a month.
Summary of Strategy
- Buy: As close to $65 as possible.
- Target: $82.50 and $100.
- Stop: $62