Litecoin Price Analysis: Big Optimism Boost Following Litecoin Futures Update
- The Litecoin (LTC) price is looking to close in the green, after six consecutive sessions of losses.
- New regulated cryptocurrency exchange, ErisX, may soon launch Litecoin futures and others.
Positive Litecoin Development
TD Ameritrade, a brokerage firm based in the U.S., have launched a new regulated cryptocurrency exchange, ErisX. This will facilitate spot and futures trading opened by Eris Exchange, a Chicago-based derivatives market.
ErisX, will provide traders access to cryptocurrency spot and futures contracts, within a single exchange. According to a spokesperson from the organization, it will allow investors to trade Bitcoin, Ether, Bitcoin Cash and Litecoin, in addition to futures contracts on cryptocurrencies.
Big Infrastructure Improvement In The Crypto Market
Over the past year now, there has been several encouraging developments, assisting in further market legitimization. The improvement of crypto market infrastructure is becoming more prominent. Liquidity of the cryptocurrencies is greatly increasing as well as market acknowledgement in categorizing digital assets as an emerging asset class.
The introduction of Bitcoin futures contracts by the Cboe Futures Exchange, Goldman Sachs planning to open a cryptocurrency trading desk and CFTC respecting that crypto has a future and is here to stay have all added legitimacy to the market. There’s more: a U.S. Federal Court declared digital currencies as commodities, the growing possibility of a Bitcoin ETF, which could seriously propel the market and introductions of regulated crypto custodians allowing more institutional buyers into the market are also a boon for optimism. As such, the likes of hedge and pension funds inclined to participate.
The trend for Litecoin of late has been firmly bearish and a stubborn trend. It has nursed losses for six consecutive sessions, dropping as much as 13% over this period. For almost two months, the price has swung between a range of $70 down to a low of $47 territory. It appears to have formed a bottom, within this range. Currently the price is stuck in between two tough respective supply and demand zones. Should the bulls manage to sustain the gains finally seen, a test over the coming days back towards $65-70 could be on the cards. Near-term resistance is eyed heading into the $60 area. Support can be observed at $55 and then the psychological $50 area.
A breach of either zone, could see huge buying or selling pressure, depending on the direction. Given how long the price has been summoned to this mundane range, chunky moves could be seen. Bulls clearing the highlighted supply, have the potential at a very fast run back towards $90. On the other hand, a breach of the highlighted supply area, could see a catastrophic back towards $30.
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.
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