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Is Litecoin (LTC) still a strong purchase?

Litecoin chart with values

Litecoin (LTC) has lost its bullish momentum once the gain has returned back under the EMA to 10 weeks. The longer the price remains below the 10-week EMA EMA, the greater the probability that it will eventually break below its support. At the moment, we do not see any strong chance of this happening in the near future. However, if the price fails to break the 10EMA resistance, then this will be the inevitable consequence. Although Bitcoin (BTC) and some large-cap currencies have managed to overcome their downward resistance, Litecoin (LTC) is still struggling to overcome the 10-week EMA. In fact, LTC / USD has been continually rejected by the EMA EMA for 10 weeks since May.

Litecoin (LTC) has seen a steady decline in volume. The price has hit the bottom for now and has consolidated above a strong support for more than ten weeks. However, as long as Bitcoin (BTC) remains undecided, Litecoin (LTC) does not go anywhere. In this uncertainty mode, if Litecoin (LTC) breaks below $ 50, it would be completely disastrous. The price of Litecoin (LTC) can not however fall below $ 50. If it breaks and closes below $ 50, there is a high probability that Litecoin (LTC) will see another correction for the next eight months or so. RSI for the above chart looks favorable for a short period, but it is unlikely that the price will stop the downtrend during this period.

While Litecoin (LTC) may have lost its bullish momentum, it is worth noting that the more it falls, the easier it is for LTC / USD to stop the bearish resistance. Litecoin (LTC) has already reached a decision point and will have to make a decisive move before December. The seasonality of the cryptocurrency suggests that from October to December they were the most bullish periods of the past. In the last days, we have already seen many cryptocurrencies that signal it. However, the market is back soon to bleed red again and is once again enveloped by uncertainty. Considering that many investors are trying to protect themselves from the stock market crisis points for a brilliant long-term future for cryptocurrencies. Litecoin (LTC) is a direct beneficiary in this case because institutions can not afford to invest in high risk currencies.

Litecoin chart with values

Litecoin (LTC) is expected to rise to new highs during its next bullish cycle. However, there have been debates on the value proposition of Litecoin (LTC) which seems to have damaged investor sentiment for now. As the weekly chart above for LTC / BTC shows, Litecoin (LTC) is back on the trend line despite having successfully passed the wedge fall. Not only has he returned to the trend line, he has repeatedly tested it. At this point, Litecoin (LTC) is very vulnerable as long as it stays below 10 weeks at EMA. A strong change from Bitcoin (BTC) could push Litecoin (LTC) into another bear trend.

Litecoin (LTC) is rapidly losing its position as the most affordable and easily accessible money with the highest growth potential. These were the main reasons why Litecoin (LTC) grew exponentially. Some argue that Litecoin (LTC) is currently one of the few cryptocurrencies available online, but with solutions such as Lightning Network behind the corner, it will not take long before Bitcoin (BTC) solves this problem. In the short term, Litecoin (LTC) could still benefit from a growing cryptocurrency market, just like most cryptocurrencies, but the debates on its value propositions will ultimately be taken more seriously.

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