The crypto market is again shrouded in losses, generating more and more negativism. Today Litecoin for example has just reached its most relevant support zone, where the behavior will determine where the price will be most likely to move next. Will LTC lose this important level?, find out below.
At the time of this writing the price of this cryptocurrency is $123.54, accumulating a loss of 1.06% in the last 24 hours, and 7.98% in the last 7 days.
The bearish behavior is undoubtedly a product of the generalized tide throughout the ecosystem.
However, there are some grounds that indicate that this currency is in good health.
Among those fundamentals we must highlight the Visa announcement, where they indicate that Litecoin cards moved more than 1,000 million dollars during the first half of the year.
This in addition to demonstrating a great adoption of cryptocurrency, speaks to us of a greater usability of LTC within the everyday.
Another important fundamental is the participation of this cryptocurrency in the investment fund of Grayscale, which recently announced that it would have presented additional trusts to become an informant company, coming closer and closer to the goal of offering an ETF.
LTC is primarily a currency that tries to offer the same security features as BTC, but in a more scalable and economical network.
Although it is far from surpassing its parent, it has been growing steadily, working as a good alternative.
Today the number of daily transactions in LTC is 142,171. The average fee cost for performing one of those operations is $0,012.
Technical analysis of key support and resistance levels for Litecoin
Looking at the daily chart of LTC vs USDT, we quickly notice a very clear bearish direction in the short term, composed of lower and lower lows and highs.
However, today as the price of Litecoin reaches the support zone surrounding $120, we should look a little to the left.
The reason for this is that while the fall is forming part of a larger bearish tilt, it is also relevant to take into account the strong rejection of low prices seen in the past, and the inability to mark a new cash low, below $122.44.
The accumulation of orders over $120 still continues to say that there is a good tilt of the odds for the bullish scenario.
We still don’t see any key bullish confirmation. In the short term we should see a break in resistance at $134.59 to think about purchases.
Due to the little space that bears have to continue selling, the odds are 55% in favor of buyers managing to defend the support in which Litecoin is currently located.
LTC medium / long term trend
To get a more complete view of what happens with the price, let’s look at what happens on the weekly chart.
We have that LTC was hampered by the resistance left by the all-time high of 2018, and from there began a major correction.
So far the fall is nothing more than a setback. And the inability to mark a lower minimum tells us that the bottom may have already been reached.
The dominant trend is still bullish, which could defend the price of Litecoin in the support it is in.
However, it is clear that there is still a significant downside risk. But, this wouldn’t really be a problem until the $105 minimum is crossed, which would leave the clearance up to $82.95.
A good confirmation that the bulls regained control is to see a break in resistance at $176.38. When it happens, it is very likely that a new all-time high will follow.
All our publications are informative, so in no case should they be followed as investment advice.
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