Litecoin (LTC) has seen exponential growth since the beginning of March, with a small bump in the road during April which quickly dissipated going into May. Prior to mid-June, Litecoin was the best performing coin in 2019, growing more than 170% in less than 90 days.
However, at the time of writing, LTC is trading just above $124 after experiencing a major correction following an enormous rise from around $104 to $144 in less than two weeks.
Will Litecoin turn things around and continue its move upwards or will price drop closer to the $99-$102 support area?
My personal belief is traders should ride the wave as LTC is still looking bullish, with price showing some recovery over the last 24 hours.
Let’s take a look at the chart for Litecoin.
The price of LTC dropped almost 15% from $136 to $112 at the start of July before recovering to around $124. Price has corrected due to the LTC market being overbought and over-bullish. As most traders and investors have warned, including myself, when there’s increasing pressure upwards, a serious correction between 20 to 30% should be expected (and welcomed). We’ve seen similar behaviour with Bitcoin over the past week.
Last month, Litecoin went from $104 to close to $144 in the space of a few days, marking a 40% increase in price, so some form of retracement was expected at some point.
Let’s also not forget a quite important point. LTC was one of the first altcoins to become bullish by the book: the 20-day EMA is above the 50-day EMA, which is above the 100-day EMA.
Moreover, taking a look at the volume profile, we see there’s loads of action around key levels such as $115-$120 – near where LTC is currently sitting – and then around the $91-$95 region.
In terms of recent news, Litecoin’s third halving is coming in just a few weeks. Those that are overly bullish on Litecoin have to look no further than the previous halving to justify their positions. What usually happens is a massive bull run in the months that follow halving events.
My guess is that Litecoin will break record highs for 2019 in the next couple of months, and will continue to do so as long as Bitcoin continues to move upwards as well.
Litecoin was released in October 2011 by Charlie Lee, a former Google employee. It was a fork of Bitcoin with the main difference being a smaller block generation time, increased maximum number of coins, and a different script-based algorithm.
Litecoin is one of the leading cryptocurrencies and is one of the top 10 cryptocurrencies by market capitalisation.
More Litecoin news and information
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.