Technical Analysis and Market Entry: Litecoin Price Set for Critical Support Retest

  • The Litecoin (LTC) price is back within the control of the bears, and trading conditions remain choppy.
  • LTC faces a descending trend line, which has been active since early February.

The Litecoin price has been subject to much choppy price action over the past few days, failing to pick up the bullish momentum seen around the start of the month. LTC/USD dropped as much as 25% over after printing the highest level since June 2018, up at $107.50.

Litecoin Recovery Mode On

LTC was being driven higher by the market bulls from 1st May up to the high print noted above, which was seen on 16th May, before then losing ground. The bulls have been supported by an ascending trend line, which has been in play since 8th February.

Despite the recent cooling, as part of a larger picture, Litecoin has been well within recovery mode. LTC/USD has gained over 265% since the beginning of the year, from the lows of $29 up to the high of 2019 at $107.50. The bulls have been buying on each period of minor dips on the trend higher, strengthening the case that buyers are in control.

LTC/USD daily chart

Send Litecoin vIA WhatsApp

WhatsApp, the popular instant messaging platform, now facilitates users to transfer Litecoin and Bitcoin (BTC) via a new bot. The new capability comes on the back of social media platform Facebook targeting the WhatsApp audience for its forthcoming stablecoin.

Zulu Republic detailed via Twitter it has crafted a new bot that will have the ability to accommodate users sending and receiving LTC and BT. This new bot is called’Lite.Im bot’.

“We are happy to announce that from today you can send and receive Bitcoin & Litecoin on WhatsApp via liteim,” Zulu Republic tweeted.

Furthermore, users can earn digital tokens by referring friends to utilize the new system. New users need to install the new WhatsApp bot, which will allow for tokens to be sent and received via the platform.

Trade Recommendation

Since momentum is currently on the downside, some patience is required to find a potential buy opportunity. Eyes are on a pullback for a retest of the long-running ascending trend line, which can be observed tracking at $77.50. The support is also in proximity to the 38.2% Fibonacci and LTC may require this retreat ahead of further moves north.

LTC/USD weekly chart.

In terms of upside targets, $107.50, the high from 6th May, is on the radar. Further north, the next zone of interest would be the $120-$125 price region. LTC/USD last traded at these heights in the early part of June 2018. A buy at the noted trend line retest would see stops placed below under the 50% Fibonacci, $63.50.

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.

Featured image courtesy of Shutterstock.

Author:
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.