Selling pressure for Litecoin

Selling pressure for Litecoin

By Cryptonite | Cryptonite | 21 May 2020


 

Hello everyone, today I would talk about Litecoin chart, LTC is one of the oldest cryptocurrency and also one of the most traded with constantly more than 2 billions Dollar exchanged every day, we can say that is pretty much liquid. The chart show us that are at a crucial moment as price can break the trendline and start a new downtrend or jump and keep the way up it started in mid march.

 

Medium Term Chart

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In this chart we can see that Litecoin was hitted hard from the selloff of february/march  with a -70%, the valuation fall from a little bit over 83 Dollar to a bottom of 25 Dollar that was just barely touched on march 13, this bearish pressure caused an explosion of volatility when the lead was taken by the bulls that was able to push the valuation till a maximum of 43,8 Dollar in just seven days.

This movement give the space to a brief correction that was healthy for the continuation of the accumulation phase, the ascending trendline that we see on the chart show us the great progress made during the next couple of month, the trend look pretty solid but is always dangerous when the valuation are close to the trendline.

A breakout could mark a new trend for Litecoin and we may expect a new bearish movement in that case, for this reason we may pay attention to the supports that we may find in this ipotetical new trend (with the hope of not see any of those levels touched btw).

The first support is at the psychological level of 40 Dollar this is a very important defence from preventing a breakout of the present uptrend, the next level is put at around 37 Dollar with another support spotted at 34,6 Dollar that is the last price before a wider fall for Litecoin.

We may think that this drawdown is not strong enough to break the trendline, in this case it will be more solid, a continuation of the accumulation movement can find some obstacle at 46 Dollar and 47,20 Dollar, this set of resistance could be a key level for attack the real battlefield that is at 50/51 Dollar.

The last resistance is a strategic level because after that we may expect a great jump till the next set of resistance at 58 Dollar and at 63 Dollar, you ca see that this can give a good acceleration to the trend.

 

Short term chart

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In the short term chart we can see that there are lower high (circle) and lower minimum (rectangle) every wave, this is a negative trend that keep pressure the valuation, as a short term signal is not very solid but bulls may act fast for reverse this trend as if it keep going we may visit pretty fast the supports we just cited in this post.

As we can see the chart give us a lot of signals that we can try to read and with the help of the general movement of the crypto majors, we may be prepared to enter at a key level or sell if we see a persistent negativity of the general sentiment.

Thanks for reading and hope that you enjoy this post, always do your own research before start any investment.

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Cryptonite
Cryptonite

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