Litecoin, On The Move And Heading Lower

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Litecoin remains bearish amid fifth consecutive lower high

Price indicators are flashing a sell signal on Litecoin following a fifth lower high and a failure to trade above the daily 200 EMA

Oliver Knight

January 21, 2020

Litecoin has been faced with a daunting rejection of the 200 exponential moving average (EMA) after making a fifth consecutive lower high since June.

The world’s seventh-largest cryptocurrency is now in danger of dropping back towards the $47 level of support.

Litecoin’s four-hour chart also shows the early stages of a head and shoulders pattern, with the left shoulder and neckline both seeing surges of volume.

Head and shoulders patterns are typically indicative of a reversal in price action, which would be in keeping with the recent rally.

Despite trading at just $37 before the new year, Litecoin spiked all the way up to $64 on January 17 before beginning a corrective move to the downside.

If LTC is to pick itself back up and rally to the upside, it needs to close daily candles above the 200 exponential moving average, which has historically been a bitter point of resistance.

The 200 EMA is also in confluence with the $59 level of resistance that suppressed price on numerous occasions throughout October and November.

A breakout above $59, coupled with Bitcoin’s upcoming halving, could indicate a transition into a bull market, with upside price targets of $77, $90, and $100.

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Litecoin (LTC) Price Gains Momentum Heading Upwards

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Please, check out weekly technical analysis of Litecoin (LTC) price prepared by Dmitriy Gurkovskiy, a chief analyst at RoboForex.

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In the short term, Litecoin has entered an ascending channel, which can be confirmed by the resistance breakout on H4. The projection channel resistance at $200 was also broken out by the bulls at the very first attempt. This means that, speaking short term, Litecoin may reach the upper projection channel border at $280 through the intermediate resistance at $266, chief analyst at RoboForex Dmitriy Gurkovskiy says.

Keeping above $220 is very important for Litecoin, as this is the level that separates the downside area from the upside. Previous chart data show a double bottom was formed at around $175, after which the price successfully went up. This shows that the short term momentum may be quite strong.

Speaking midterm, Litecoin is reversing after breaking out the channel resistance on D1. After reaching the same target at $280, the price may head towards $307.

Moving Average Convergence Divergence (MACD) is ready to leave the negative territory and give a full buy signal, while bear signals are fading out. Stochastic oscillator is fully positive and issues buy signals, too. Technically, a conservative stop loss may be placed at $140, and an active one, at $175.

As for fundamentals, Litecoin does have some reasons for going up; moreover, those reasons are long term. It has been revealed recently that Charlie Lee, the Litecoin creator, is going to launch two payment services. The first one is known as LitePay and is expected very soon, while LitePal is supposed to be released before the end of the year.

Looking into detail, one may notice that the services announced by Mr Lee could become really powerful. The main task of LitePay will be converting digital coins into USD and vice versa; it will be linked with Visa, which will allow LitePay to become widespread in a very tight period of time, while the fee is going to be very low and is expected at 1% at max. Such a service is nothing else than a very competitive one.

Menwhile, LitePal will be handling far more serious tasks. This service is going to be fully compatible with global payment providers, its main function being handling day to day Litecoin transactions. This will allow its users to use Litecoin for paying for goods and services, and this is going to be the largest Litecoin project ever, being supported by PayPal and Western Union. This is a big step forward.

Disclaimer: Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.

Litecoin price analysis: LTC looks bearish, heading to mid-term support

The RSI for Litecoin is currently moving in a sideways following a sharp rebound from the oversold area.

  • Litecoin (LTC) may bounce back higher if the mid-term trend line can further produce support for the market
  • Litecoin’s price has dropped by 4.18% following the current bearish action in the market

The much-anticipated halving has turned out to have a low impact on the Litecoin market. As expected by its holders, the event which occurred last week was supposed to gear the price of LTC up significantly. Instead, the price keeps dropping until the market locates support around the $82 during the past weekend.

Meanwhile, the cryptocurrency has continued to bolster on the three months support line, drawn in yellow. On the third time, Litecoin (LTC) is nearing the yellow line at $78 – who remains the second half of the year’s low. As of now, the yellow line is still holding the bear pressure in the market. A rebound may fly through price back to $150, where it began to drop in late June

Litecoin (LTC)’s Current Statistics as on August 13, 2020

Trading Price: $85.72

Market Capitalization: $5,402,368,180

Trading Volume: $2,621,041,387

Key resistance levels: $91.6, $100, $107.2, $120, $138

Key support levels: $82, $75.8, $68.8, $61, $56.6

Litecoin (LTC) Price Prediction based on August 12, 2020 data

On the daily chart, Litecoin (LTC) is looking bearish as price falls back below the $100. Now, the bear appears to be stepping back in the market, and we can expect the price to drop to $82 and $75.8, bottoming in the yellow support line before bouncing back up to $91.6, $100 and $107.2 before breaking to $120 and $138 in an upward range.

LTCUSD, Daily Price Chart – August 12

However, if the market drives below the $75.8 support, Litecoin’s price will slump to $68.8, $61 and $56.6, bringing the price to March low. As shown in the price chart, Litecoin’s volume is fading away due to the selling pressure in the market.

Conclusively

If Litecoin (LTC) can manage to break and stay above the $100 level, we may start to consider a positive move for this market. Otherwise, the price will continue to remain under until we see a bullish regroup.

Technical Indicator Reading

The RSI for Litecoin (LTC) is currently moving in a sideways following a sharp rebound from the oversold area.

On the Stochastic RSI, the Litecoin (LTC) has recently seen a price fall at the oversold level. We can expect some buying pressure once it turns back upward.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

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