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At the time of writing, Litecoin (LTC) seems to form a new resistance level around $ 32.
My basic expectations come from the volumes of light trade seen after the holiday break, which seems to suggest that the community of cryptocurrencies is avoiding the trade in Litecoin, although some recent news indicates an increase in the take-up by traders.
At its lower price levels, the LTC ticker has decreased by more than 92% from last year's high of $ 304. While the overall cryptocurrency market seems bearish, Litecoin could reach a point where the risk / return ratio is very favorable. After all, the price has apparently dropped so low that bottom pickers and, possibly, smart money have begun to take an interest.
The commercial behavior of Litecoin
Source: TradingView
A look at the weekly chart shows that the volume started to decline significantly in January 2018. It became anemic by the end of October.
However, the volume started to rise in November 2018 when Litecoin fell below $ 50. The volume has remained relatively healthy since then. This could be an indication that the participants are once again starting to show interest at these levels.
More importantly, the increase in volume allowed Litecoin to increase by more than 40% from the 2018 minimum. This price action he could be interpreted as a rebound of the dead cat, meaning a temporary recovery from a prolonged decline that is followed by the continuation of the downward trend. However, due to lack of interest from the community, it may be too early to draw conclusions. In the first place, we would expect to see a volume that changes drastically in the upward or downward direction.
Short-term price action
When the participants rejected prices below $ 33 in September 2017, the price action inspired an epic run that saw Litecoin rise to $ 420 at the end of December 2017. Now that the market is under $ 33, we could expect to see the same price level as a key point of resistance.
Over $ 50 is where Litecoin can really become exciting while the next significant resistance level is $ 100.
My short-term projection for the LTC ticker is that it will become bullish as soon as we pass the resistance level of $ 33, although we may see a reverse movement if Litecoin breaks below the $ 23 to $ 30 price range.
