Trade Recommendation: Litecoin

Our February 13, 2019 trade recommendations for Litecoin (LTC/BTC) hit both targets. Those who stuck to the trading plan and bought on dips grew their investments by over 62% when the market touched 0.018939 on April 3rd.

Now, Litecoin is clearly on a strong uptrend. Thus, it is a good buy on dips candidate. The only question here is what level to place your orders to minimize risks and maximize gains. With the recent dip, Litecoin is giving us a window for a solid entry.

Technical analysis shows that LTC/BTC is respecting support of 0.015. This view comes after the market refused to go below this support on April 11th. From that point, bulls have shown their intentions to mark their territory at 0.015.

In addition, the diagonal support is helping Litecoin stay above 0.015. On top of that, we have the 50-day moving average acting as support at current levels. With numerous supports converging at 0.015, bulls have a great chance to preserve it.

Lastly, let’s not forget that the daily RSI is no longer in overbought territory. The technical indicator has cooled off, which means that Litecoin has the room to restart its uptrend any time.

The strategy is to buy on dips as close to 0.015 as possible. As long as Litecoin trades above this level, bulls will likely gather the momentum to hit our targets of 0.019 and 0.023.

The process may take a month.

Daily Chart of Litecoin/Bitcoin on Binance

As of this writing, the Litecoin/Bitcoin pair is trading at 0.015302 on Binance.

Summary of Strategy

Buy: As close to 0.015 as possible.

Targets: 0.019 and 0.023.

Stop: 0.0143

 

Disclaimer: The writer 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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.