Trade Recommendation: Litecoin
Our February 9, 2019 trade recommendation for Litecoin (LTC/USD) hit the target. Those who followed the trade recommendation grew their investments by up to 92% when Litecoin climbed as high as $79.667 on April 2nd.
While Litecoin exceeded our target, we’re happy to take profits because at that point, the market was starting to show signs bullish exhaustion. On April 3rd, the daily candle had a long wick on top of its body to indicate the emergence of sellers. In addition, Litecoin was already in extreme overbought territory. The overheated technical indicator suggests that a correction was in order. And, that’s what we’re getting now.
With this pullback, we have an opportunity to buy the dip.
Technical analysis shows that LTC/USD is enroute to support of $67. We have this view after the market breached immediate support of $75. This move signalled the need for a deeper retracement.
The support at $67 is a very good spot for bulls to make a stand. After all, bulls tapped this price area as resistance from September 2018 to April 2019 before taking it out on April 2nd. Now that the market is correcting, a successful retest of this former resistance as support is bullish. This will help in keeping Litecoin’s uptrend healthy.
The strategy is to buy on dips as close to $67 as possible. If bulls hold this level, our initial target is $100. Take that out and the next target is $132.
The process may take a month.
Daily Chart of Litecoin/US Dollar on Bitfinex
As of this writing, the Litecoin/US Dollar pair is trading at $72.743 on Bitfinex.
Summary of Strategy
Buy: As close to $67 as possible.
Target: $100 and then $132.
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.
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