Still, Litecoin is ranging within a $20 zone with upsides at $70. Though we are expectant at the back of strong fundamentals and technical formations, our Litecoin trade plans shall be solid if and only if our trading conditions are met.
Latest Litecoin News
Relying on the so called experts can be dashing for your portfolio. While they may be right and authoritative, an investor should take initiative and research before making an investment decision.
A case in point is the damning analysis from Tushar Jain who said Litecoin is obsolete. Taking a swipe at Charlie Lee the founder of Litecoin, he said Litecoin—the seventh largest coin by market cap, is a relic that will crashing to zero. But, looking at price action, Litecoin is back to +55 territories and likely to add in the coming weeks. Like Arthur Hayes ETH “shit coin comment”, analyses as those are prevalent at bottoms. More often than not, price tends to fade their expert projections.
Apparently investors see potential in LTC. Fact is, Litecoin is part of what SFOX is pitching to institutional level and high net worth investors. Speaking after the announcement, Charlie lee said “well known” investors back the exchange and this addition exposes Litecoin to high liquidity and institutional exposure. Overly, this is good for the depth of Litecoin as it tames volatility. Before this, CoinText did provide support allowing users to send besides Bitcoin, BCH and ETH, Litecoin to a mobile number.
Litecoin Price Analysis
Even though Litecoin is down five percent in the last week, there is a reprieve as far as investors and traders are concerned. From the chart, it’s evident that prices are down 80+ percent from 2017 gains but $50 is providing support.
While we can interpret this revival as a retest because of early Aug 2018 breaks below $70, the strength of $50 as a reliable support could cancel this bear break out trade pattern. Aside, notice that Litecoin prices have been consolidating within a $20 range with resistance at $70 in the last two months.
Furthermore, the long lower wicks hint of a potential shift of momentum from bears to bulls. Therefore, fusing all this, we retain a Litecoin bullish outlook. This position shall be null only if there are strong and rapid losses confirming week ending Aug 12 losses driving LTC below $50. Before then, we remain upbeat expecting surges above $70 triggering buys aiming at $90 and $110.
A ranging market and strong supports at $50 could form a strong foundation for buyers to drive Litecoin prices above $70. Gains as such will nullify the beak break out pattern and losses of Sep 5 indicating a shift of momentum from bears to bulls.
Because of the last two bull bars, risk off traders can load at spot prices with stops at $55 and targets at $70 and later $90 if buy momentum is strong. However, this depends on market level participation propelling prices above $70 triggering bulls.
Disclaimer: This is not investment advice and views represent that of the author. Do your own research before making an investment decision.
Litecoin image via Shutterstock.