Litecoin Price Analysis: LTC/USD a Buy Today, Tomorrow a Sell?
- The Litecoin price on Tuesday attempts at stabilization, but given the recent pattern, this could be sold again on Wednesday.
- LTC/USD weekly chart still looks worrying, and there could even be room for a complete market correction, sending the price as low as $4.
The Litecoin price has been heavily dictated by the bears since the 7th November, like many of its peers. LTC/USD has dropped a whopping 50% from the mentioned date, dropping to its lowest levels seen since June 2017. In terms of a bottom that many ‘analysts’ and ‘experts’ continue to speculate about, this is still much uncertain for now. There is a fear of commitment, so it seems. On each occasion that gains are seen for a session, the very next they are given back and more.
Recent Price Behavior
Over the last seven sessions, a pattern has been observed and on November 21st the bulls managed to push for a closure in the green. The following session saw another day of selling, forcing a negative close. This pattern is still in play as of today, with LTC/USD trading marginally higher by just over 1% at the time of writing. As touched upon above, this just demonstrates how strong this bearish trend has been in pushing this price south. Perhaps the sellers are now running exhausted, given the recent described behavior.
Price action of late has been moving within an ascending channel formation. This began to take shape on 24th November. Current momentum can see this gradually move towards vital barriers that must be broken, in order to see a confirmed recovery. An area of near-term notable resistance is seen from $33 up to $35.50. Should the bulls manage to push for a break above this range, then decent upside momentum could likely follow through. A breakthrough could send LTC/USD moving back towards a retest of the big $50 level. Minor area of supply seen just ahead of that $47-49.50.
When looking from a longer time frame, things are not so encouraging. Should the market fail to stabilize and show a sign of reversal, with a strong bullish weekly candle, then bigger problems are still to come. As of now, LTC/USD is flirting around weekly support seen in June 2017. If momentum to the downside maintains its current course, then what really is stopping this market from a complete correction? An extreme scenario being that it moves back towards $4 territory.
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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