If anything, Litecoin price action has been slow and moving within an accumulation in the last 40 days. Though we are yet to see clear movements above $90, chances are Litecoin bulls might muster enough momentum today and thrust past this buy trigger line opening up $110. If not and LTC sellers set in, then we shall stick to our Litecoin trade plan and anticipate further sell pressure once we see close below $70.
From the News
It’s is now emerging that “it was a relief” for Charlie Lee to liquidate all of his Litecoins in February this year. During the Asian Blockchain Summit 2018 held in Taiwan, the Litecoin founder held an interview with a Chinese publication, Jinse where he divulged how he felt about his decision and how free he is now.
Of course, as a renowned developer and the founder of one of the largest coins in the world, selling his coins at peak was interpreted as a lack of confidence and soon after, it was a Litecoin meltdown with prices sliding to current rates. Many investors took a hit and some actually do blame him for triggering a 80 percent value depreciation.
Anyhow, since Lee is now drumming support for Litecoin and Bitcoin, it is good news when Litecoin hodlers see payment providers as Flexa jumping into the market and creating a “one-tap” cryptocurrency payment solution that will accelerate crypto adoption.
Aside from Flexa, we now have Skrill-formerly known as MoneyBookers-launching a new service for their customers to easily purchase cryptocurrencies from the more than 30 supported fiat currencies including the USD and GBP.
Though the service is available in 30 countries including the UK but excluding the US and Russia, interested and verified account holders would only buy, sell or hold cryptocurrencies but can’t transfer them to different accounts.
Litecoin (LTC) Technical Analysis
What we can see in this time frame is a bottoming market and that’s a big plus for Litecoin hodlers considering the markets has been on a slide for the past six months. As a matter of fact, Litecoin (LTC) is fairly stable but is still down four percent in the last week.
The reason is perhaps here in the chart. Notice that while we remain positive expecting Bitcoin resurgence to haul Litecoin and other altcoins, Litecoin is trending inside a consolidation and is still confined within week ending June 24 high lows.
Now, for bulls to be truly in charge then we must see movements backed by marked market participation above $100 and $110. Before then, we shall take a neutral to bullish stance initiating trades only when the markets say so.
Like the weekly chart, LTC prices have been moving within a tight trade range in the last month or so. Well, we have clear demarcation as far as price action is concerned and from previous Litecoin analysis, $90 is an important resistance level. Not only does $90 mark July highs but any break above it might beckon short term buyers keen on retesting $110 and perhaps cancel this bear break out pattern.
Remember, we are technically trading inside a bearish break out pattern which was set rolling by June 10 high volumes break below $110.
Odds are, LTC buyers might edge past $90 today and once they do, buyers can load on dips with first conservative targets at $110. Ideal and safe stops would be at $80 for a nice 1:2 risk reward ratio.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.