Litecoin Technical Analysis: January 13, 2020
January 13, 2020
The cryptocurrency market is still under the pressure but it is important to say that Litecoin was one of the best performers in the last several weeks. The price of Litecoin has advanced from $36 above $50 in less than four weeks and the current price stands around $50. 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 February 2019), 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 strong support level.
We can also notice that the price of Litecoin has been moving in the downtrend for the last six months and the current recovery could not be considered the end of this trend. The crypto market goes through bullish and bearish phases that hugely influence the price of Litecoin. Bitcoin has the most effect on the overall market, but we have also seen altcoin-led rallies in the past, known as “alt seasons”. Although the price can weaken even more the current price represents a very good entry level for the long term investors. It is very hard to predict where the price of Litecoin will go, but if the price jumps again above $60 it would probably reach $70 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 $35.
Recommendation: Litecoin was one of the best performers in the cryptocurrency market in the last several weeks, the price of this cryptocurrency has advanced from $36 above $50 in less than 30 days. If you’re looking to invest in Litecoin, you would be able to make good returns according to the price predictions in the next several years. 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 $60 that could be a very good opportunity for the short term traders, short-term traders can put the stop loss at $55 and take profit at $70 or $80. If the price drops below $40 support that would be a “SELL” signal and the open way to $35.