The cryptocurrency market is pressured, all major cryptocurrencies are falling last several weeks and according to current market sentiment, this trend is not over yet. The price of Litecoin is down more than 30% since the beginning of November but the price could fall even more and we can not say for sure that this is the end of the downtrend. Litecoin is a very popular cryptocurrency to monitor since it appears to hold a number of advantages over Bitcoin. Litecoin provides faster transaction confirmations (2.5 minutes on average) and Litecoin’s transaction fees are, on average, considerably lower than that of Bitcoin. The Litecoin network invites users who want fast, quick solutions involving cryptocurrency and blockchain technology. A very good team stands behind the Litecoin network and it is important to say that Litecoin was created by a Google employee Charles Lee. The future actually looks bright for Litecoin but investors should have in mind that Litecoin isn’t the only privacy coin competing for market share and some other cryptocurrencies could potentially limit the adoption of Litecoin. In the chart below (a period from December 2018), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $60, $80, $90 and $100, $40 represents the current support level.
Although the price can weaken even more the current price represents a very good entry-level for the long term investors. Litecoin has a very good risk/reward ratio in the market right now which means you stand to gain a lot more for taking a comparatively smaller risk. For the investors/traders that are not averse to risky speculative investments, putting a reasonable amount of money into Litecoin could potentially turn out to be an excellent investment. It is very hard to predict where the price of Litecoin will go, but if the price jumps above $60 it would probably reach $80 in the short time period. If the price jumps above $90 we have an open way to $100. If the price drops below $40 support that would be a strong “SELL” signal and the open way to $30.
Recommendation: The price of Litecoin has been moving in the downtrend for the last six months and for now, we can not see the light at the end of the tunnel. Although the price can weaken even more the current price represents a very good entry-level for the long term investors. I would recommend everybody to be careful and to invest a small sum of money in Litecoin, the best time period for me is between 3-5 years, hold and wait. The price of Litecoin is still far away from the LTC price predictions but according to the rules of technical analysis, the “bearish” trend of this cryptocurrency is still very strong. If the price jumps again above $80 that could be a very good opportunity for the short term traders, short-term traders can put the stop loss at $75 and take profit at $90 or $100. If the price drops below $40 support that would be a “SELL” signal and the open way to $30.