Is Litecoin ready for another bull run?

Is Litecoin ready for another bull run?

By Cryptonite | Cryptonite | 18 Jun 2020


 

 

Hello everyone, today I would take a look to a cryptocurrency that is one of the oldest of the crypto market and that is also one of the most capitalized, Litecoin is a crypto with a capitalization of 2,8 Billions and a daily exchange of over 1,5 Billions, Binance, OKEX and Bitfinex are frequently among the most active markets.

Before starting our analysis let’s take a look at some cool statistic, according to intotheblock.com at the present price just 24% of the holders are in the money (in a gain position), meanwhile a large number of holders (69%) keep LTC at a higher price, if we look at the large holders we see  that 48% of the holders are medium or big investor from 0,1% till 1% of the circulation  and those that hold more than 1% of the total circulation.

Finally there is one third (33%) of the holders that own Litecoin since the last 1 to 12 month, this is a pretty big number, in my opinion the fact that many new investor came to own LTC could mean that they expect that the future project would increase the value of the coin.

Maybe the upcoming MimbleWimble upgrade is getting people into the coin, according to Charlie Lee it will enhance privacy and scalability, the so called Litecoin 2.0 will be able to scale much  better than privacy focused protocols like Monero & Zcash (Charlie Lee words…. Let’s see if this will be true).

Ok now that we catch up with some statistic and some news of the coin we are going to analyse the cryptocurrency chart. We can start to watch what happen to the chart, the June 11 drawdown broke the long term uptrend and it seems that now we are in a correction mode, this movement is not very steep and give us some support where Litecoin could use to jump up again.

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The drawdown came after Litecoin touched the upper band of the trading range we are in since the start of April, the rejection of the 50 Dollar area driving down the valuation of the coin than the next support are at 41.5 Dollar, if we lose this level bears may be strong enough to push down LTC till 39 Dollar that represent the lower band of the trading range, this price is really important because in the past here bulls was able to show a strong reaction.

In the strongly negative view of a breakdown of the 39/40 Dollar  we may expect to visit a set of support at 36.7 Dollar and at 34.4 Dollar, those levels may see a very strong rebound with buyers that came in, anyway we may expect not to see those levels if there will not be some very negative news for Litecoin.

In the upward the resistance are at 47 Dollar at first, anyway the real battleground remain the 50/51 Dollar level, in the last months we was rejected yet two times, this time we may hope that the momentum push the bulls to defeat the upper band of the trading range.

The next resistances are at 61 and 64 Dollar, this mean that we may have a solid 10 Dollar run if we break the trading range in the right direction.

The correlation to the market is strong than if Bitcoin and Ethereum will be able to give some positive news we may expect that also Litecoin would bounce back from the first support.

 

Short Term View

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In the last chart, we can see that in the last month we yet catch the 41.5 Dollar area and this was a good level, the reaction was frequently good and pushed up Litecoin price.

This push was never strong enough to drive us directly to the upper band of the range but was always a good start for revamp bulls interest on the cryptocurrency, we may expect to see a similar reaction if we touch the 41.5 Dollar again.

 

 

That’s all for now hope you liked the analysis and remember always to do your own research before investing.

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Cryptonite
Cryptonite

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