Litecoin Price Analysis: LTC/USD $50 Level Comes to The Rescue, as Buying Returns

  • Litecoin (LTC) price received a decent bounce ahead of the big psychological $50 mark on Friday.
  • LTC/USD dropped to the lowest levels seen since 18th September, recovery is now eyed, following the steep fall.

Litecoin (LTC) had suffered a bout of selling pressure during the prior session, as seen across the cryptocurrency market. LTC/USD initially formed a comfortable bottom which was observed around $57-56, for the past few weeks. Given the solidity of this area, it isn’t too surprising that when it was breached, how far it fell. However, with all being said, the price has now managed to bounce at the September 18th low. This was seen at $50.45, with that remaining respected and intact. 

Charlie Lee: Litecoin More Centralized Than Bitcoin

The Litecoin founder, Charlie Lee, was recently interviewed by SFOX, covering some interesting ground on the foundation. Lee was discussing about the advantages of being a public face, having a presence. It is not an easy task in taking an ecosystem forward, that has many groups working against it, when the creator is not around. The founder having that presence, assisted him in pushing Litecoin forward and getting the important SegWit activation.

Charlie Lee noted his observations with Bitcoin (BTC) stating that “two years ago, I saw that Bitcoin was having all this trouble with activating SegWit. I saw SegWit as an amazing feature, but there was all this FUD around it. I realized I could help out by pushing Litecoin towards getting SegWit activated. Being its creator, I was able to make that happen.” Furthermore, he covered that there are drawbacks associated with a cryptocurrency having a public face, citing Litecoin as being more centralized than Bitcoin.

Technical Review 4-hour Chart

LTC/USD 4-hour chart

LTC/USD has received a firm bounce as mentioned above, buyers flocking in at the 18th September low area, $55.45. This will be observed going forward as a proven area of demand. It is worth noting, last time the price retreated here, it went on to gain 30% over a 9-day period. LTC/USD moving up to the $65 territory before being met with hard sellers.

The near-term challenge will be for the bulls to try and breakdown the $55 area. During the mentioned bull run from the 18th September low, the price had initially encountered some friction here, before then being able to move forward. LTC/USD last traded in this territory back on 25th September, where a required dip was seen to lead onto further buying. Should bullish momentum maintain its course, the next place of interest will be the pre-fall levels seen at $57. This had proven to be a strong amount of comfort over the past few trading weeks, prior to the fall on Thursday.

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.

Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.