Litecoin as a Valentine’s Gift?

On Monday, we shared an analysis highlighting a potential buying opportunity for Litecoin, which was followed by a 15% price increase.

Since then, the price has undergone a corrective pullback, presenting a fresh confirmation for those looking to reinforce their existing positions—or for those who missed the initial opportunity to capitalize on the upward movement. Could this be a second chance to buy at a discount?

4-hour time frame analysis

LTCUSD - 4 Hour Time Frame

As mentioned earlier, the price has recently undergone a corrective decline, during which a new support zone has formed—clearly visible as the upper blue zone on the attached chart. This zone serves as a secondary confirmation for entering buy positions, with potential targets set at key Buy-Side Liquidity levels.

Litecoin price target

For traders who entered the market on Monday, the Stop-Loss order remains unchanged. However, if the price closes below either of the highlighted blue support zones, it may be prudent to sell part of the position to ensure effective risk management.

For those entering the market now, the risk management approach will differ slightly. Since the recommended entry point is now higher, the Stop-Loss could be placed below the most recent higher low, as indicated on the chart. This positioning ensures the trade maintains a balanced risk-to-reward ratio.

By following these guidelines, both new and existing positions can be managed strategically, maximizing potential gains while mitigating downside risks.