Jaipur (CoinChapter.com) — Litecoin (LTC) buyers looking to capitalize on the cryptocurrency’s recent uptrend might be in for some trouble. Technical charts show that after a two-day-long rally, a dip and is inevitable.
LTC/USD supported but…
…bears have taken over Litecoin’s relief rally. It seems as if the upsurge was nothing more than an exercise in booking quick profits. On the 4-hour chart, Bitcoin’s “light” counterpart remains supported above the 20-day exponential moving average (EMA). But sustained bearish pressure might not help much and erase most of the recent gains.
A break below the 20-day MA (moving average) will confirm the bearish trend reversal. Further movement down to the 50-day MA will confirm a “lights out” situation.
Gameplan
Until critical supports like the ones mentioned above are broken, this is nothing more than a pullback before another rally. As per the cryptocurrency market insights platform CryptoWatch, LTC trades in 87% correlation with Bitcoin (calculated over 30 days). What this means is that the crypto asset will mirror almost all price moves of its parent.
The BTC/USD 4-h chart shows buyers entering new positions after a brief selloff. However, things look shaky for LTC. Nonetheless, owing to the close correlation with Bitcoin, Litecoin might also experience buying pressure soon.
Long-term investors may want to play the wait and see the game. For swing traders or short-term investors, it is advisable to exit all positions and book profits. Because on the 1-hour chart, the LTC/USD pair has dipped below the 20-day EMA and 20-day MA and testing support at the 50-day MA.
LTC/USD Broke Below The 20-Day EMA And 20-Day MA To Test 50-Day MA On The 1-h Chart, Source: LTCUSD on TradingView.com
Although buyers have started showing up, it will take multiple successive green candles (with breakouts above 20-day EMA and 20-day MA) to confirm an uptrend.
Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.
UNUS SED LEO, a cryptocurrency that describes itself as "the utility token at the heart of the iFinex ecosystem,"...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.