Technical Analysis and Market Entry: Litecoin is Demonstrating Growing Signs of a Recovery
- Litecoin price has managed to stabilize within the past four weeks, following a brutal bout of selling.
- LTC/USD price action is demonstrating some near-term promise of upside momentum to come.
LTC/USD: Recent Price Behavior
The Litecoin price has managed to stabilize over the last four weeks, after taking such a heavy beating from late June until September. There was a strong downward trend that kicked into place across the market, following a decent rally that had commenced at the start of 2019. LTC/USD was enjoying a decent upward trend from January, having gained as much as 380%, to its highest levels that were seen since May 2018.
LTC/USD, however, ran into a chunky supply area, that was observed between $130-145 price range. As momentum to the upside topped out, the daily candlestick on 17 June, produced a bearish evening star formation. Technically, this is a pattern which leads to a change in trend, which was very much seen. Litecoin was then forced to drop as much as 70%, reversing a bulk of the 2019 recovery gains.
As mentioned, some stabilization has been seen since the last week of September. A decent area of demand came into action, running form $60 down to $50. The noted zone has previously proven to attract buyers and support the price. Back in April, LTC/USD shot aggressively to the upside, within the noted territory. A high amount of momentum carried the price up firmly into the $140 territory.
Litecoin Futures to be Launched by ErisX
ErisX, Chicago-based crypto solution provider are planning to launch Litecoin futures by the end of this year. Additionally, the company will be supporting; Bitcoin, Bitcoin Cash and Ethereum futures as well, which was reported through their blog post.
The crypto solutions providers recently joined hands with FIS to modify the existing systems and to verify that the exchange is supported by FIS services. It will allow ErisX to be able to help institutional members that have existing back-office workflows. There are several companies that are providing futures markets are already working with FIS to scale their businesses.
Given the earlier described stabilization, further moves to the north are still eyed, price action is demonstrating signs of a recovery to come. A buy position around the current market price, above daily support at $58. Targets to the upside would be; $75, $80 and then $95. Stops to be placed just below the current acting demand zone at $49.50.
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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