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, after a couple of substantial falls toward the end of June and into early July, LTC is currently trading at just above $118, and the market now seems to be moving sideways.
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 be careful at the moment, as sideways markets are useful for accumulation but also risky.
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 last week. 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, as the coin is consolidating above its 21-day EMA.
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 should continue following Bitcoin’s path (as it’s the most important BTC testnet). Price-wise, I would expect it to consolidate a bit further before pumping over the $120-130 levels.
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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