In the last few days, Litecoin’s bull momentum has been waning allowing sellers to reverse gains. The result is that long upper wick but regardless, we still hold a Litecoin bullish stand expecting gains above $90 this week. That’s the only technical trigger allowing for further gains towards $110, $140 and $180 in the next few weeks.
From the News
All eyes will be on India today as a court hearing challenging the blanket ban by the country’s central bank on cryptocurrency related businesses begins. Even though the verdict will not be immediate considering the complexity of the matter, it is monumental not only for crypto exchanges whose businesses have been crippled but for the crypto sphere in India because then we shall know the government position.
20 July 2018
Important day for India #cryptocurrency community.
The question is will the Supreme Court of India rule in favor of cryptocurrency or against it.
Finally I would say #isupportcrypto
#CryptoFreedom #OurFreedom #RETWEEET #pray
— pushpendra singh (@pushpendrakum) July 20, 2018
As this is happening it’s important to notice that the court did ask the RBI to at least soften their stance. On their part exchanges were willing to open up to allow for oversight should it be required from them.
Overly though, exchanges in India remain positive and the whole blockchain community expect some sort of clarity that would open doors for further LTC and crypto demand in the world’s 3rd largest economy.
While the market is expectant, Litecoin’s market cap continues to slide and is now down to seventh after being usurped by Stellar. It could even get worse for Litecoin because it is only $500 million away from being replaced by Cardano, a coin that’s exploding following direct endorsement from eToro. Besides, ADA end up being listed at CoinBase a fact that is giving it impetus.
Litecoin (LTC) Technical Analysis
Week ending June 24 bear candlestick is important in our analysis and it’s easy to see way. While we agree that we need to see strong reversal patterns before settling on buying, we must realize that should this week close as bulls then we would end up with a nice three bar reversal pattern, the Morning Star.
Thereafter, a confirmation next week accompanied by volume surges would most likely trigger the next bull wave above $110 and $180. However, before then, let’s see what price action has in store over the weekend. In any case, $70 is our main support from our previous LTC technical analysis and any close below it open doors for LTC depreciation towards $50.
At the daily chart, it’s classic case of effort versus result where July 16 and 17 bullish candlestick stands out. In the past three days buy momentum has been slowing down but still, LTC prices are yet to reverse Mon-Tue gains.
That’s important. And what’s more, there are hints of bull pressure in lower time frames if we take a look at today’s long lower wick.
Regardless, we need to see movement and for bulls to be in charge then they need to close above $90, our minor resistance line and buy trigger.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.