As the new year began, LTC surged and reached an all-time high of $ 83.03 at the end of February according to CoinMarketCap's chart. Since then, the LTC price has continuously decreased and lost about 50% of its value on March 12. After that, the price dropped slightly from $ 48 to $ 31 and plummeted to $ 25. At the time of writing, LTC trades at around $ 33.5.
Meanwhile, traders from Twitter and TradingView are sharing the uptrend for LTC, hoping it will start rising soon.
"Signal long-term reversal”
Trader and The Birb Nest founder, Cryptobirb, shared the LTC chart from a few days ago. Accordingly, there are some signs that LTC will soon reverse. However, he predicts there are moments of discount.
- Crypto₿irb (@crypto_birb) March 17, 2020
"LTC chart from 2 days before. Some signal long-term reversal. Sure it will be subscribe to buy dip ”.
‘Price increases for LTC’
Trader Don Crypto believes that the LTC / BTC pair will rally if it breaks the trendline.
$ LTC / BTC - EW count
Bullish, especially if it breaks that TL. pic.twitter.com/P9NOffp6D6
- il Capo Of Crypto (@CryptoCapo_) March 18, 2020
"LTC / BTC - Count EW
Price increase, especially if broken trend line".
"LTC can reach 56 dollars"
Trader ‘transparent-fx’ from TradingView hope LTC is likely to grow to the $ 52.29-56 zone from its current location on the LTC / USD chart. That can happen if enough accumulation in the market.
He also gave a discount scenario. Without accumulation, the LTC will fall to $ 20, create a reversed head and shoulders pattern and then rise to the same area of $ 52.29-56.
LTC hit its third low last week, mainly due to the chase of the broader cryptocurrency market, with daily volume reaching multi-year highs on most exchanges. LTC's potential trend change path can be considered using the EMA, Volume Profile Display Range (VPVR) and Ichimoku Cloud.
Daily profit of LTC / USD since start
On the daily chart of the LTC / USD market, the 50-day and 200-day EMA created a bearish cross last week, marking the end of the fast bull run. The previous bear trend lasted 168 days.
The 200-day EMA is currently at $ 61 and will act as resistance in the near term. VPVR is showing resistance between the range of $ 42-62 and strong support between the range of $ 28-32. There is no bullish or bearish divergence at the moment.
OI LTC / USD on Bitfinex has 81% long. In particular, the number of long orders decreased slightly in the past 2 months and short increased slightly in the same time period (top table, chart below). The significant price decline will make the situation worse because the long positions will continue to lose money. This problem is called the ‘long squeeze’. On March 30 and 31, 2019, short accounted for a larger percentage than long and short squeeze occurred soon after, causing the spot price to rapidly rise higher.
Regarding the Ichimoku Cloud, four metrics are used to determine if a trend exists or not; Current prices in relation to Cloud, Cloud's color (red is decreasing, blue is increasing), Tenkan (T), Kijun (K) and Lagging Span. The best entry point always occurs when most signals change from decreasing to rising or vice versa.
On the daily chart, Cloud's data is decreasing; Spot prices under Cloud, Cloud are down, TK cross is down, Lagging Span is below Cloud and prices. The trend will remain bearish as long as the spot price is below the Cloud. Kijun is currently 58% higher than spot prices, indicating oversold conditions.
On the daily LTC / BTC chart, the spot price has never previously maintained any position above 0.02 BTC but has closed above 0.005 since March 2017. The 50 and 200-day EMA cannot create bullish cross because the spot price breaks down on the Cloud daily and thus continues to create bearish cross. The trend is down as long as the price remains below the 200-day EMA and the daily Cloud.
The high volume VPVR Node at 0.0088 BTC will act as a strong resistance to any upside move. There is almost no VPVR support below 6,000 sats. OI on Bitfinex for the LTC / USD pair is 55% long. There is no bullish or bearish divergence at the moment.
The basic indicators show that on-chain activity has continued to slow down over the past 2 years. NVT has recently reached a new all-time high, proving on-chain utility decreases per dollar of market capitalization compared to previous periods. MVRV has now fallen into the historic buying zone. Hash rate drops by nearly 70% with mining profits near the all-time low.
The developer activity on the main Github repo has been almost non-existent for the past year, although the improved LTC protocol for expansion blocks and MimbleWimble was released late last year. Together, these changes will lead to a soft fork, allowing for individual transactions and increasing coin flexibility. However, the expansion block and MimbleWimble can also offer different consensus rules with reduced chain security, as well as hidden inflation.
The technical indicators for both LTC / USD and LTC / BTC pairs fell after the historic negative day on all cryptocurrency markets. The reversal action that brings the price to the 200-day EMA at $ 61 and 7,250 sat, respectively, is likely to occur in the next few weeks as long as the price does not make a lower bottom. The strong volume support line is at $ 40 for the LTC / USD pair while LTC / BTC has virtually no historical volume support below the low of 5,500-6,000 sats.
You can see the LTC price here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to AZCoin News
Follow the Twitter page | Subscribe to Telegram channel | Follow the Facebook page
Crypto loans are only from 5.9% annual interest rate - you can use the money effectively without selling coins. Earn up to 8% interest per year with stablecoin, USD, EUR & GBP with insurance up to 100 million. Come on, get started now! →