Technical Analysis and Market Entry: LTC/USD Bulls Have Laid Strong Foundations For a Big Jump Higher
- Litecoin is moving within consolidation mode, but price structure remains attractive for further upside.
- Critical daily support should be noted at $55.50, LTC/USD must stay above for further upside pressure.
LTC/USD: Recent Price Behaviour
The Litecoin price has been producing strong moves to the upside over the last four weeks of trading. A rally of some 66% within the noted period in the current bull run, also producing the most consecutive run higher since May 2019. There is growing reassurance in the recovery of Litecoin, following a period of selling in the second half of 2019.
LTC/USD from January 2019 was enjoying strong moves to the upside from the start of 2019. It had rallied some 530% up to the peak in June, from $23 up to $145. Once the price peaked at the noted high area, the market entered a firm bearish trend. The price was forced to give up most of the gains that had been made in the first part of the year. It dropped some 76% before managing to stabilize and bottomed out late in December 2019.
The kickstart of the recovery was within the $30 price territory, managing to find some buyers within this demand area. A signal had been provided to the market of an incoming change in trend, following a weekly hammer candlestick closure. It formed in the week of 16 December, the price then starts to see the foundations being laid for greater recovery.
Daily Chart View
Price action via the daily chart is moving within consolidation mode, following the big advance north on the 14 January. In the single session, LTC/USD had produced double-digit gains, jumping some 22%. It was the biggest daily gain seen since June 2019. The market bulls appear to be taking some time, ahead of further potential strides to the upside.
LTC/USD has been able to make itself comfortable at a daily support level, which can be seen at $55.50. The sessions from 15 January onwards have required this cushion, as the price consolidates. Given the stability that is being formed at this level, following the aggressive move higher, it does raise the case for further imminent buying momentum.
Given the above-noted consolidation and stability at the critical daily support of $55.50, buy positions remain attractive. An entry around the current market price, while the price sits in proximity to the noted level. Targets to the upside are eyed at; $65, $75 and then $80. Stops to be placed below the daily support, leaving enough breathing room, at $51.50.
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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