After Six Months of Bliss, Litecoin (LTC) Might be Preparing to Sink to $60

click here to see original post

Litecoin (LTC) slide 4.9 percentHalving talk dominates, demand expected to increaseLike Bitcoin (BTC), Litecoin is peaking, dropping 11.4 percent from last week’s close. That’s despite the impending block reward reduction, set to activate in early August, and other inbound positive fundamental factors. All in all, any break out above $120 will catalyze participation, driving demand, wiping the losses of May 30’s downturn.Litecoin Price AnalysisFundamentalsIn the top 10, Litecoin (LTC) is one of the best performing digital assets. Six months after bottoming, the sixth most valuable coin is up five-fold, cementing its position in the top 10. Fueling this upswing are several factors including the rise of Bitcoin and well, Litecoin halving.Halving is a hard-coded scheduled event. Within the Litecoin network, it happens after every 840,000 blocks. Trackers indicate that it is less than 62 days away, planned for early August. As a result, traders are ecstatic, keen on reaping dividends from the expected LTC re-evaluation.Drawing conclusions from past events, halving will reduce the coin in circulation by slashing daily rewards. Therefore, it is no wonder analysts are linking recent rally with this scheduled event. But there is more.Litecoin as a network is largely successful. Its hash rate is at record highs hinting of investment, which in turn bulwarks the platform’s security. Besides, LTC is liquid and explaining that are the number of exchanges offering support as well as merchants accepting Bitcoin’s Silver.Candlestick ArrangementDown 11.4 percent week-to-date, LTC is stalling. Obstructing the next wave are active bears at $120. From the chart, LTC is in range, within a $20 zone with caps at $100 and $120. Even though buyers are in control, there is resistance for higher highs.Odds of a correction are high since prices are within May 30th bear bar which is extensive, completing the three-bar bear reversal pattern. That is despite today’s bar trending with a long lower wick revealing support in smaller time frames.While the trend is up, aggressive traders can take advantage of the dip and buy the correction. The immediate target is $120. However, this plan is valid as long as LTC fails to drop below the 38.2 percent Fibonacci retracement of May trade range at $85. If bears flow back driving prices below this mark, LTC could drop to $60, retesting May’s low before snapping back to trend.Technical IndicatorAnchoring this trade plan is May 30th bar. It has high trading volumes of 605k against 368k. If today’s prices end up closing below the middle BB confirming bears of late May with above average trading volumes, LTC could end up sliding to $85. Conversely, any rally above $120 with high participation preferably exceeding 605k or 803k of May 16th will prop bulls aiming at $180.Chart courtesy of Trading View. Image Courtesy of Shutterstock

Share !