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Litecoin Approaches Record High as Investment Appeal Grows

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Litecoin approached all-time highs over the weekend, as the apparent surge in bitcoin extended to the altcoin market.

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LTC/USD Price Levels

LTC/USD reached a high of $88.22 on Sunday, its best level in nearly three months. At press time, prices were up 8.4% at $85.93 for a market cap of $4.6 billion. That’s enough for seventh spot on the global cryptocurrency chart.

Trade volumes have broken above $381 million over the past 24 hours, with major exchanges GDAX, Bithumb and Bitfinex accounting for the bulk of the activity.

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LTC/USD has strong momentum nowt hat prices have broken out of the $72 resistance range.

Litcoin prices have been surging all month as excitement over atomic swaps grew. Litecoin is seen as a major cog in the push toward atomic cross-chain transactions. That’s because every major cryptocurrency can be traded for LTC on the open

Atomic swaps seek to bring interoperability between altcoins and the original bitcoin.

The LTC/USD cross has added more than 63% this month, and is back within $5 of record highs. Prices hit a snag in early September as investors reacted to China’s all-out ban on cryptocurrency market. News of the ban shaved $50 billion off the global cryptocurrency market in relatively short order. Markets have more than recovered even as China shows reluctance in reinstating cryptocurrency trading.

Concentrated Buying

For all the euphoria surrounding Litecoin, it appears that much of the buying has been confined to a few notable addresses. The Litecoin Rich List indicates that most users hold less than 100 LTC units, with 69 addresses holding nearly 38% of the total. The richest Litecoin address holds 1,420,001 units, which is equivalent to nearly $122 million.

Broader demand for the digital asset is also partly in response to the growing appeal of bitcoin. Widely regarded as the ‘silver’ to bitcoin’s ‘gold’, LTC is considered to be more stable than the leading digital currency.

In addition, Litecoin is one of three cryptocurrencies offered by Coinbase. Bitcoin and Ethereum, both of which are at record highs, are the others. This gives LTC even more clout in the investment community.

2018 and Beyond

If 2017 was bullish for cryptocurrencies, 2018 is expected to see a much more concentrated stake in the altcoin universe – that is, if you believe investors are looking for the most innovative coins. When it comes to innovation, very few altcoins offer the same value as Litecoin. The digital token has quickly emerged as one of the fastest and most affordable transaction units on the market.

With the exception of Ethereum and perhaps Ripple, Litecoin is also one of the best marketed altcoins. This will give it broader mainstream appeal as institutional traders look to diversify in the cryptocurrency space.

If the recent price trajectory of Ethereum is any indication, Litecoin may catch a favorable tailwind as demand extends from bitcoin to the altcoin universe. Unlike bitcoin, which is valued at more than $9,000, Litecoin remains highly affordable to investors.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

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Trading recommendation: Lisk/Bitcoin

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The best way to trade a range-bound market is to buy at the lower end of the range and sell at the upper end. If the range is large and well established, it offers us a good risk to reward objective. We believe that LSK/BTC fits the bill and offers us an attractive opportunity to buy at the support and sell at the resistance.

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Key points

  1. LSK/BTC has formed a large trading range.
  2. Buy at the lower end of the range.
  3. Sell at the upper end of the range.

Weekly chart

LSK/BTC has been trading in a large range of $0.00046 on the lower end and $0.0016 on the upper end. On three occasions, the cryptocurrency pair has bounced off the supports. Similarly, it has returned from the $0.0016 levels thrice. The range is well defined. Currently, price is trying to rebound after breaking below the lower end of the range last week. We believe that a buy at current levels offers us a low-risk and high-reward trading opportunity.

Daily chart

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On December 07, the cryptocurrency pair broke below the support of $0.00046. However, the very next day, it climbed back into the range, which is a positive indication. This shows that the bulls want to keep the range intact. However, the rally from the lows hit a roadblock at the 20-day EMA.

Currently, LSK/BTC is again pulling back towards the lower end of the range. If the support holds, we believe that the digital currency will again rally to the upper end of the range. Therefore, we suggest buying 50% of the desired allocation close to $0.00050 levels. Remaining 50% of the position should be purchased once the digital currency breaks out of $0.00068. The profit objective is a rally to the upper end of the range at $0.0016. The trade should be closed if the virtual currency breaks down and sustains below the lower end of the range. This is a long-term trade.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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Trade Recommendation: XMR/BTC Pair Throwback

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The XMR/BTC market (Monero) has been in downtrend on the hourly chart after posting a high of 0.0225 on December 6 and failing to hold critical support at 0.02. It went to as low as 0.0145 on December 8 before respecting RSI at 32 where it established support. The market used the new support level to rally and generate one higher low after the other. It recently attempted to reclaim support at 0.02 but was repelled by bears. Currently, the market is trading around 0.019 levels where it appears to have created another higher low.

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Technical analysis shows a large reversal pattern in the hourly chart that can take the XMR/BTC pair to 0.025. Even though the market failed to breach resistance at 0.02, investors should not see it as a failed breakout. What we’re seeing is a throwback which is a temporary retreat in price. Throwbacks are common in breakout plays and are often seen as a bullish signal. The next time the market attempts to breach 0.02 resistance, it has a much better chance of breaking it with conviction.

The strategy is to buy breakout at 0.02 with immediate stop at 0.0189.

Hourly XMR/BTC Chart on Poloniex

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As of this writing, XMR/BTC is trading at 0.018714 on Poloniex.

Summary of Strategy

Buy: breakout at 0.02

Target: 0.025

Stop: move below 0.0189 after buying breakout at 0.02.

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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Trade Recommendation: FCT/BTC Bullish Reversal

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The market reach its all-time high back in June this year when FTC/BTC (Factom) reached 0.01463162. Unfortunately, the pair wasn’t able to sustain its momentum. It created a lower high several days later at 0.01066744 which signalled investors to take profits or cut their losses. As a result, the market tumbled and lost 93.17% in value from its all-time high. Such a tremendous loss would have created an atmosphere of despair in the market. Usually, that’s when the savviest traders come in.

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Technical analysis reveals that the worst is behind the pair. FCT/BTC touched support at 0.001 on the daily chart twice and respected it on both occasions. This is a good indication that the market has found a reliable support level. In addition, hourly chart shows that a large reversal pattern is underway. The pair may have retreated when it nearly touched 0.002, but it generated a new higher low in the process at 0.00156566. The throwback is a bullish signal that enables the pair to gather momentum to break resistance at 0.002.

The strategy is buy on breakout at 0.002. Breach that level and the market reclaims 0.003. Sell that level because it is a strong resistance.

Hourly FCT/BTC Chart on Poloniex

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As of this writing, FCT/BTC is trading at 0.001738 on Poloniex.

Summary of Strategy

Buy: breakout at 0.002

Target: 0.003

Stop: move below 0.0018 after buying breakout at 0.002.  

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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