Litecoin’s potential 9.6% surge shows more promise
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Litecoin’s potential 9.6% surge shows more promise

March 9, 2020      Nick Leeson

Litecoin or the creator, Charlie Lee likes to call it, silver coin as compared to bitcoin’s gold. Litecoin, basically, mimicked the bitcoin code but Lee made sure to keep the blocks times less and increased the circulating supply, among other things.

Similar to Bitcoin, Litecoin also undergoes halving. Litecoin’s halving took place in 2019 and as observed historically for Bitcoin, there was an impressive surge in Litecoin’s price before the halving. Since then, the coin has started to decline. At press time, LTC was worth $63 and had a market cap of $4 billion. The coin has definitely moved out of its prime as it now stands as the seventh-largest cryptocurrency in the world based on market cap.

Regardless of its rank, the coin, at the time of writing exhibited a good opportunity for the surge as it has breached an important level of resistance.

  • The breach of $62.42 level has made Litecoin’s short term outlook more bullish. As the coin has just recovered from a bearish descending triangle pattern, the take over of the $62.42 marks the start of a potential rally.
  • The next level of resistance for LTC lies at $68.54, which is a 9.6% surge from LTC’s current valuation.

60-Minute Litecoin Chart

Source: TradingView.

The one-hour chart showed LTC’s bullish prospect after its recovery from the bearish descending triangle mentioned in the previous article. As seen above, the price has the potential to surge by 9% since its breach of the $62 level of resistance. As seen in the chart, there is no resistance holding the coin back from surging to $68.54.

Although the resistance at $62.42 has been breached, the price is still sticking close to it. The aforementioned scenario would be possible if the price manages to stay above this level. However, if this resistance flips into support, this could put LTC’s value in trouble.

If this were to happen, LTC would dip from $63 to $60.21, which is the initial and immediate support. Breaching this would cause the price to dip to the base of the descending triangle at $58.16.

The MACD indicator shows the start of a decline in the red histogram bars, indicating a decline in selling pressure. Hence, a continuation of this would eventually lead to diminished selling pressure where buyers could take control and push the price of LTC to $68.54 and above.

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Nick Leeson
Nick Leeson

Nick Leeson is an avid trader and cryptocurrency enthusiast. Introduced to cryptocurrencies in early 2016 by a misclick on a YouTube video, Leeson has grown increasingly fascinated by them. He owns cryptocurrencies to trade and complete his goals of growing his accounts from scratch. Leeson's favourite cryptocurrencies include a lot of mid-cap altcoin projects that have the potential to actually disrupt the future. Any and all technical analysis/price prediction by Leeson is not a financial and/or investment advice of any sort.