- Litecoin has recently grown, exceeding Stellar's market capitalization value.
- The LTC market has exceeded its previous resistance at $ 37 as it approaches $ 45.
- Support in progress: $ 37.07, $ 35.70, $ 30.69, $ 28.51, $ 24.74.
- Forward Resistance: $ 39.75, $ 41.75, $ 43.85, $ 46.67.
Latest news about Litecoin
It seems that the recent marketing efforts of Litecoin Foundation, combined with the recent exchange partnerships, have helped Litecoin to come to terms in recent days as LTC runs to the $ 40 handle.
The recent rally began after the Litecoin Foundation sponsored the co-main event at UFC and received an iconic "shoutout" from Octagon, Bruce Buffer. The event was broadcast to millions of viewers around the world and Google search trends during and after the event peaked at 100, indicating that the term "Litecoin" was more popular.
During the recent price increase, the search trend for Litecoin increased further and reached another peak of 100, making the peak of the previous research term (which will now be less than 100) insignificant, as illustrated in the graph below.
The marketing push from the UFC event may have played a significant role in the recent price increase, but it is likely that the recent announcement of OKEx adding "perpetual exchanges" of Litecoin-Ethereum to their exchange was a factor . These perpetual swaps are virtual derivatives for traders who provide 100x leverage and have no expiration date.
In other important Litecoin news, Litecoin's Lightning network has recently exceeded 100 knots, while the new off-chain scaling solution continues to grow.
– Litecoin.com (@LitecoinDotCom) 5 January 2019
We continue to look at the price action for LTC / USD and highlight any potential support and resistance areas going forward.
Analysis of LTC prices
Litecoin saw a significant price increase of 10.96% in the last 24 hours of trading, bringing the current trading price to around $ 38.45 at the time of writing. The cryptocurrency experienced a 19.31% price increase compared to the previous 7 trading days, with a further 49% price increase over the last 30 trading days.
Litecoin has now risen to sixth place in the ranking of market capitalisations. He passed Stellar today after the market capitalization for Litecoin rose to $ 2.48 billion.
The 68-month project, however, continues to be traded at a lower value of 89% compared to its high historical price.
Analyzing the price action from the short 4-hour perspective, we can see that the Litecoin market started to rise from $ 22.84 on December 14th 2018. The market continued to rise until it was reached resistance to the previous long-term downside 1.272 Fibonacci Extension level (drawn in purple) priced at $ 37.07.
When LTC / USD hit this resistance area, the market flipped over and began to decline until short-term support was found. 618 Flaminacci retracement level (drawn in green) for $ 28, 51.
After reaching this support area, the market rebounded and started to rise again.
Price action has recently surpassed the previous peak to $ 37.07, starting a new bullish wave. This put the market in a bullish commercial condition right now.
In order for the trend to return to a bearish condition, we should see stock prices fall and head below the $ 28.51 handle.
Where is the resistance for LTC localized to the top?
If the bulls continue to drive the LTC / USD higher, they will first encounter greater resistance to the downside of .5 Fibonacci (drawn in red) for $ 39.75. This level of Fibonacci retracement is measured by the peak observed in November 2018 at the minimum placed in December 2018.
If buyers can cause a price action higher than the $ 40 limit, we can expect that further resistance will exceed the short-term levels of 1,272 and 1,414 Fibonacci Extension (plotted in black), with a price respectively of $ 41.75 and $ 43.85.
Resistance at $ 43.85 will require significant momentum to be overcome as it is further strengthened by the Fibonacci (618) bearish (red drawn) retracement level priced at $ 43.80.
If the bulls continue to break above the $ 45 handle, you can find more resistance to the Fibonacci 1.618 extension level (drawn in black) for $ 46.87.
Where is the support if the bear price action decreases?
If sellers begin to push down on price action, we can expect immediate support for the downside to be located at the previous 1.272 Fibonacci Extension downside (drawn in purple), priced at $ 37.07.
Further support below can therefore be predicted with the Fibonacci retracement level at -236 (drawn in red) at the price of $ 30.69. This is followed by the previous "highest low" level at the previous level .618 Fibonacci Retracement (drawn in green) for $ 28.51.
Note that the other support for green Fibonacci retracement levels is now rendered obsolete as price action has traveled even higher today.
What are the technical indicators that show?
On the daily chart for LTC / USD, the RSI is traded well above the 50 handle. This indicates that the bulls are in full control of the momentum in the market.
The RSI on the daily chart still has room to travel even higher, which could indicate that the LTC / USD will continue to travel higher in the coming days before the RSI gets close to overbought conditions.
Recent marketing efforts have certainly paid off for Litecoin when Google Search trends have reached their newly established peaks. Excitement alone could continue to make Litecoin reach the market capitalization of EOS, which is only $ 200 million.