Litecoin (LTC) has gained more than 14 percent in 24 hours, surging from a low of $77.60 on Tuesday to a high of $93.05, before dropping slightly to $90.09 where it is currently trading.
A Wild Week for the Litecoin Price
The move saw the litecoin price outpace its peers as the crypto market struggled to recover from a punishing correction. LTC sunk as low as $76.70 during the sell-off.
It is fair to say that it has been an up-and-down week for the crypto market’s fourth-largest player. CCN reported earlier in the week that the Litecoin Foundation secured a partnership with the Miami Dolphins to accept cryptocurrency payments for the team’s 50/50 raffle using LTC and BTC. Despite this, litecoin found itself locked firmly in a downtrend mirroring that of market leader bitcoin.
Typically, when bitcoin sneezes, the entire crypto market catches pneumonia, but litecoin has bucked the trend somewhat, defying bitcoin’s dominance to break out on its own back in February. This time around, however, litecoin was sucked down with bitcoin, only finding its way back into positive territory over the past 24 hours.
More Volatility Still to Come
As a result of the halving event, which will cut the cryptocurrency’s inflation rate in half 18 days from now, the expectation is that LTC traders will yet experience some more unpredictable activity. When the halving takes place, the block rewards generated per successful hash will halve from their current rate. It is far from clear what effect this will have on the cryptocurrency itself, however.
Litecoin founder Charlie Lee believes that halving will hit miners hard, even predicting that some of them will close shop altogether. Afterward, he says, “everything will be fine.”
LTC is now trading at 200 percent of its price level at the start of the year, underlining the strength of the crypto market’s recovery from 2018’s year-long bear period.
Regardless, LTC is now worth only about 22 percent of its all-time high value of $420 which it achieved on December 12, 2017, during the historic crypto market bull run.
Litecoin entering dangerous territory as slump could mean the dawn of the Death Cross
Litecoin’s post-halving slump should be met with concern. The fifth-largest cryptocurrency in the market has been in a slump since the beginning of the month, with many dismissing it as simply the halving bears. However, the digital silver is now entering dangerous territory.
Since topping out at $144 during the close of June, the price has been in a free fall. At press time, Litecoin was trading below $75, a whopping 47.91 percent below its yearly high. This price depreciation did not happen suddenly, but in gradual phases.
At first, the price dropped by 15.76 percent between June 26-27, following which the price fell by another 27.31 percent between July 9-14. Between 21-24 July, the price dropped by another 10.39 percent and then finally, between 12-15 August, the price dropped by 16 percent and took the price below $80 for the first time since early May.
Looking at the daily chart, Litecoin is forming a falling wedge. The top of the same is structured via lower and lower highs, seen at $133, $123, $98, $89 and finally, $77. Barring one (immediately rectified) drop from $90 t0 $79 seen on July 16-17, LTC has been experiencing lower lows as well. Based on the daily chart, the same are placed at $118, $102, $89, $83, and $75.
The falling wedge is accompanied by a decrease in volume. If the breakout is likely to materialize, it has to be accompanied by investor interest via an uptick in volume. The digital silver is dangerously close to dropping below its key support level of $72.69, as the current price is just below $74. If this does break, the wedge will no doubt prolong itself, and the next support level that will be tested will be $66.34.
In the short-term, resistance is placed at $77, which will definitely be tested if the wedge sees a breakout. Further, the next resistance levels that will be tested are $90 and $101, but the same is unlikely given the peevish movement of Litecoin at press time.
The severely slumping price of Litecoin has been understated. Over the past two months, with LTC dropping by close to 50 percent in value, the coin has dipped below its 50, 100, 150, and 200-day moving averages. The last of the four was witnessed less than 10 days ago, on 14 August, as the price dropped by 10.27% over the day.
Back in May 2018, when LTC was priced at over $160, it slipped below the 200-day moving average. Since then, the price has dropped by 72 percent before moving over the indicator. A move over the same further pushed the coin up by 227 percent to $145 in June 2019. Hence, this indicator bears importance.
Further, the 50-day moving average is also, unsurprisingly, in a slump. If this bearish slump continues, to the degree which it is, the 50-day MA could dip below the 200-day MA, resulting in a death cross for Litecoin and thereby spelling a considerable time with the bears. The two indicators crossed over last on 15 March, when the 50-day MA moved above the 200-day MA. This resulted in a golden cross for digital silver. At the time, LTC was trading at $44.
It should be noted that Litecoin’s MACD indicator has signaled a move up as the MACD line shot above the Signal line on 23 August. Further, the histograms have turned positive for the first time since early August, indicating a mild move upwards.
A move out of the falling wedge would result in an immediate test of the $77 resistance level. However, this does rely on the volume moving upwards, as well as the MACD-over-Signal line scenario holding up for a while. On the other side, if the bears continue to maul the LTC market, the cryptocurrency could be in the perils of a death cross, which would signal a price slump for several weeks, if not months.
Litecoin price analysis: LTC/USD ignites momentum towards $100
- Litecoin bulls intensify their grip in the market; all eyes set on $80 short-term resistance and $100 ultimate resistance.
- Technically, the short-term analysis signals a bearish momentum.
If Litecoin continues with the current price action within the ascending channel, achieving $100 in the following week is almost a guarantee. At press time, LTC/USD is trading above the moving averages. Which suggests that buying influence is gaining traction. Moreover, the 50 Simple Moving Average (SMA) 1-hour has crossed above the 100 SMA 1-hour to show buyers have the upper hand.
Technically, the short-term analysis signals a bearish momentum. The Moving Average Convergence Divergence (MACD) is heading is still holding ground in the positive area. However, the negative divergence points towards increasing selling activity.
On the upside, the 21 Exponential Moving Average (EMA) is standing in the way of upward correction at $74.63. If the buyers manage to clear the resistance, there is a higher chance that LTC will trend towards $80 in this weekend session.
The immediate support is seen at $74 (moving average double-cross). In the event, a reversal occurs and the channel support is broken, bulls can anticipate support at $73, and $70 respectively.
LTC/USD 1-hour chart
Litecoin technical analysis: LTC/USD went down from $75.65 to $75.15 this Saturday
- LTC/USD has found resistance on the downward trending line.
- The hourly LTC/USD price is currently trending horizontally.
LTC/USD daily chart
Following a bullish Friday, LTC/USD managed to have a bearish start to Saturday. This Friday, the price of LTC/USD went up from $73.50 to $75.65. Litecoin has gone down to 75.15 so far this Saturday and is facing resistance from the downward trending line. The price is trending below the 200-day simple moving average (SMA 200), SMA 50 and SMA 20 curves. The moving average convergence/divergence (MACD) indicator shows a reversal of market momentum from bearish to bullish.
LTC/USD 4-hour chart
The 4-hour LTC/USD price is consolidating in a flag formation. The price is trending above the SMA 50 and SMA 20 curves and is below the SMA 200 curve. The 20-day Bollinger jaw is widening a little bit, which hints at increasing market volatility. The Elliott oscillator has had four straight bullish sessions.
LTC/USD hourly chart
The hourly LTC/USD is trending horizontally around the $75.25 resistance line. The price has spiked above the green Ichimoku cloud. The relative strength index (RSI) indicator was trending right next to the overbought zone and then dipped down to 61.
|Today last price||75.14|
|Today Daily Change||-0.3854|
|Today Daily Change %||-0.51|
|Today daily open||75.5254|
|Previous Daily High||76.0343|
|Previous Daily Low||72.5179|
|Previous Weekly High||79.0884|
|Previous Weekly Low||70.0674|
|Previous Monthly High||127.2049|
|Previous Monthly Low||76.4679|
|Daily Fibonacci 38.2%||74.691|
|Daily Fibonacci 61.8%||73.8611|
|Daily Pivot Point S1||73.3508|
|Daily Pivot Point S2||71.1762|
|Daily Pivot Point S3||69.8344|
|Daily Pivot Point R1||76.8671|
|Daily Pivot Point R2||78.2089|
|Daily Pivot Point R3||80.3835|