Home / Litecoin / LTC Trading in a wedge pattern that falls while the bulls get ready for a breakout

LTC Trading in a wedge pattern that falls while the bulls get ready for a breakout

litecoin it has remained relatively stagnant in the last 24 hours of trading, without moving much towards the top or down. The cryptocurrency is currently trading at the $ 60 handle after seeing a 7.74% increase over the last 7 trading days.

Created by a former Google employee, Charlie LeeIn October 2011, Litecoin was destined to become a "lighter" rival than Bitcoin. It is designed to have faster transaction speeds and much lower costs than Bitcoin.

Litecoin also has an active Lightning network that allows transactions to be processed outside the chain, thereby reducing the load on the main blockchain.

The Lightning network has recently made news as Forbes reported that an enterprising hacker was able to buy Coca-Cola through a personalized vending machine using the Lightning network (Bitcoin). This showed how the Lightning network could allow small and fast transactions, which could also benefit LTC.

Litecoin is currently in 7th place in terms of market capitalization across the industry. It has a total market capitalization value of $ 3.52 billion after the 65-month cryptocurrency has suffered a 30-day price reduction of 31%. Litecoin is currently trading at a lower value of 83% compared to its historical maximum (ATH).

We continue to analyze the long-term price action for Litecoin.

Litecoin price analysis

LTC / USD – LONG TERM – DAILY TABLE

Analyzing the Litecoin market in the long-term perspective above, we can see that the market has had an incredible bullish wave when the price action started from a minimum of $ 49.02 on 2 November 2017 and it has been extended to an ATH price of $ 370.78 on December 19, 2017. This is a price increase of 650% from the low to high.

We can see that after price action has placed ATH, it has begun to roll and decline. Originally it had found some form of support in a Fibonacci retracement of the .768 at the price of 118.37 dollars in February 2018. This Fibonacci retracement is measured by the entire upward stroke described above.

The market managed to stay above the $ 118 support for the next few months. However, since June 2018 began to operate, we can see the price action fall below the $ 118 handle and fall further below the $ 100 handle.

The market has found support for a long-term downside of 1,272 FIbonacci extension level (drawn in red) for $ 73.85. We can see that this level of support took place during the months of June and July 2018. However, when the industry bloodbath began in August 2018, price action has declined.

We can see that price action has continued to decline until further support is found at the 1,414 Fibonacci Extension bearish level (drawn in red) for $ 53.69. We can see that the market had even dropped briefly to complete a 100% retracement of the bull rush at the end of 2017, when price action once again reached the $ 49 handle.

It is also important to emphasize that the market has established a very pronounced wedge formation that has been negotiated internally for most of the year of trading. Price action is approaching the top of the wedge and an upward break is widely expected.

We continue to analyze price action a little bit more closely in the short run and highlight any areas of support and resistance.

LTC / USD – SHORT TERM – DAILY TABLE

Analyzing the market from a shorter time frame, we can see that the $ 49 support was further strengthened by a short-term downturn 1.414 Fibonacci Extension level (drawn in turquoise) for $ 49.21. As the market approached this area, it was heavily rejected, bouncing the market higher.

The price action is currently exchanged for resistance marked by the upper limit of the commercial wedge. The price action has exceeded the upper limit, but failed to do so.

In the event that bears push downward prices, we can expect immediate support to be placed on the short-term side of 1,272 Fibonacci Extension levels (drawn in turquoise) for $ 57.35. An additional support located below this can then be expected on the long-term downward 1,414 Fibonacci Extension level (drawn in red) for the price of $ 53.69.

If bearish pressure continues to push the market even further down, we can expect a more significant short-term downtrend resistance 1.414 Fibonacci Extension level (drawn in turquoise) again, priced at $ 49.12.

Alternatively, if the bulls can regain momentum and push price action above the upper limit of the steep commercial wedge, then we can expect the highest immediate resistance to hit the highs of September 2018 for $ 69.28. , followed by the resistance in the 100 days of average movement that currently hovers around the $ 72 handle.

A further resistance above this can then be predicted at the Fibonacci retracement level of .886 at the price of $ 86.29.

The technical indicators within this market are currently producing neutral readings. The RSI is negotiable directly on the 50 handle, indicating that neither bears nor bulls have momentum control in the market.

If we would like to see a positive break in the trading wedge, we would need to see the RSI going back over the 50 handle.

We continue to analyze the price action for LTC on long-term BTC.

LTC / BTC – LONG TERM – DAILY TABLE

Analyzing the price action for LTC / BTC from the long-term perspective above, we can see that the market has recorded a significant uptrend. Price action started with a minimum of 532,000 SATS on December 8, 2017 and extended to a maximum price of 2.5 million SATS on February 15, 2018. This was an increase in prices more than 355% from the minimum to the top.

We can see that, after the placement of the ATH, the price action has reversed and started to decline for the rest of the year, after falling below the 100-day moving average. in May 2018.

The market continued to decline as the year progressed, until price action recently found some support for the Fibonacci retracement level of .886, priced at 756,000 SATS. As the market approached this level, it was rejected, causing a rebound in price action.

It is important to underline that this support area has been further supported by a long-term downward extension of Fibonacci 1.618, with price in exactly the same area.

The price action is now exchanged for resistance provided by the Fibonacci retraction level .786 at the price of 954,000 SATS. If the bullish momentum can push price action above this resistance level, then we expect the highest immediate resistance to be found at the 100-day moving average that currently fluctuates around the million handle of the SATS.

A further resistance above this can therefore be envisaged at the previous 1.272 Fibonacci Extension downside at the price of 1.1 million SATS, followed by the .618 Fibonacci Retracement level at the price of 1.28 million SATS.

Alternatively, if bears come back into the market and bring down price action, we can expect immediate support to be at the Fibonacci retracement level .886, once again at the price of 756,000 SATS.

The technical indicators within this market are currently favoring bulls at this time. The RSI is currently trading above the 50 handle, indicating that the bulls have momentum control. As long as the RSI remains above 50, we can expect the market to continue to recover some of its recent losses this year.

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