Technical Analysis and Market Entry: Litecoin’s Big Supporting Trend Line Provides New Entry for Bulls
- Litecoin’s price was forced to retreat down to a known reliable trend line of support.
- LTC/USD bulls will be looking to accelerate to the north after receiving the required comfort following a much-needed technical correction.
LTC/USD: Recent Price Behavior
Litecoin has been trying to find some firmer ground following the loss of momentum towards the latter stages of June. The price had printed a high of $146 on 22 June, which was the highest level seen since May 2018. However, the market bulls failed to break down the supply area heading into the $150 price territory.
Long Running Ascending Trend Line
Over the last ten days, LTC/USD has been trading very close to a vital long-running ascending trend line of support. It has been active since the back end of April, and on each occasion, the price has come into contact with it, pushing the value higher. Litecoin should remain well supported by the trend line, as long as the price remains above via the daily chart view. Should a daily candlestick see a closure below, then this support would most likely become redundant.
Litecoin Accepted by Over 39,000 Stores
Flexa, a New York blockchain payment startup, recently announced that it will be adding Litecoin to its payment network. It will be the fifth cryptocurrency to be accepted by merchants on its network, as per the company’s official announcement. It will provide Litecoin with a more significant platform for mass use, as has been the case for Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Gemini Dollar (GUSD). Litecoin is now accepted as a payment at some 39,250 stores across the United States.
Charlie Lee commented on the announcement while in Taipei:
“I’m excited to see Flexa help push mainstream adoption of Litecoin payments, being able to pay with LTC at all these new major merchants is great for the entire Litecoin community. Adding Litecoin brings Flexa one step forward in its mission to make any cryptocurrency spendable at any store, in any country around the world. That’s why we’re so proud to partner with the Litecoin Foundation on bringing cryptocurrency payments into the mainstream, starting with inviting thousands more people to use Flexa’s SPEDN app.”
Given the recently proven price stabilization for LTC/USD, a buy looks increasingly attractive. The strong acting ascending trend line is somewhat of a reassuring case for upside. An additional confluence of support is in proximity to the current price, a demand zone. It can be seen tracking from $128 down to $115, very close to the noted trend line.
In terms of upside targets; $150, $170 and then $230, where the price last traded in late February 2018, should be eyed. Stops would be considered just below the trend line and demand zone at $107, leaving enough breathing room. Should the support be broken down, then another buying opportunity could very well be presented at the psychological $100 mark.
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.