Home Cryptocurrency Litecoin Technical Analysis: February 01, 2019

Litecoin Technical Analysis: February 01, 2019

The January has been a very negative month for the cryptocurrency market, all major cryptocurrencies are still falling and the price of Litecoin is also pressured by this situation. The price of Litecoin currently stands around $31 and the first strong sign of recovery could be if the price jumps above $50. Litecoin is a very popular cryptocurrency to monitor since it appears to hold a number of advantages over Bitcoin. Litecoin provides faster transaction confirmations (2.5 minutes on average) and Litecoin’s transaction fees are, on average, considerably lower than that of Bitcoin. The future actually looks bright for Litecoin but investors should have in mind that Litecoin isn’t the only privacy coin competing for market share and some other cryptocurrencies could potentially limit the adoption of Litecoin. Although the price can weaken even more the current price represents a very good entry level for the long term investors.

Technical analysis

The price of Litecoin is still far away from the LTC price predictions but according to the rules of technical analysis, the “bearish” trend of this cryptocurrency is still very strong. The current resistance levels are $50, $60 and $70, $30 represents the current support level. It is very hard to predict where the price of Litecoin will go, but if the price jumps above $50 it would probably reach $60 in the short time period. If the price jumps above $70 we have an open way to $100. If the price drops below $30 support that would be a strong “SELL” signal and the open way to $25.

Recommendation: The cryptocurrency market is in the deep “bearish” phase and according to the current market sentiment, this trend is not over yet. LTC has a short-term resistance area at $40 and it would take a break above this level to confirm a new leg higher towards the $50 resistance. If the price jumps above $50 that could be a very good opportunity for the short term traders, short-term traders can put the stop loss at $47 and take profit at $60 or $70. If the price drops below $30 support that would be a “SELL” signal and the open way to $25.

 

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