Litecoin (LTC) Up 26.3% In the Last Week, What’s Bogging Down Price?
- Litecoin prices up 26.3 percent
- Adoption levels on the rise
- Transaction volumes low but up from Dec 2018
Despite short-term sell pressure, Litecoin (LTC) is on the rise and adoption levels picking up. We can only conclude this as bullish and a pre-requisite for higher highs above $50.
Litecoin Price Analysis
The price of a digital asset, a product of supply-demand dynamics, is one of the many metrics of gauging performance. Fashioned as silver to Bitcoin gold, Litecoin is perhaps one of the few coins to gain widespread adoption. Leading the park is Bitcoin and similar to Bitcoin, LTC is one of the most supported assets, available in leading cryptocurrency exchanges across the world.
As impressive as it may be, it is adoption that excites investors and blockchain maximalists. Designed to complement Bitcoin, Charlie Lee is one of the leading investors of Elizabeth Stark’s Lightning Network. Although Litecoin’s LN is not as popular as that of Bitcoin, the coin stands to benefit thanks not only to the positive correlation of price but mainly because of sub-atomic and atomic swaps capability.
Once the testing phase is complete, the network’s capacity will expand, allowing for Litecoin’s and Bitcoin’s expenditure as adoption take root thrusting crypto to the mainstream.
Litecoin (LTC) is spearheading recovery in the top 10. After weeks of false bottoms, LTC prices are changing hands at $42, up 26.3 percent in the last week and set for more expansion over the weekend. Like before, we shall maintain a bullish outlook.
Determining our short-term trajectory is the ability of Litecoin (LTC) bulls to sustain prices above $35. The level is our immediate support, and in a classic bull breakout pattern, traders should consider every low a buying opportunity.
For better entries, a Fibonacci retracement tool comes in handy. When we paste it on recent high low, not only does it complement our general outlook backing bulls but it hints of sellers driving prices back to $35-$40 supports. That’s the 61.8 and 78.6 percent Fibonacci retracement level, a typical area where asset prices tend to recover.
Already, there are hints of sellers. Note that today’s bar has a long upper wick meaning there is sell pressure in lower time frames. If prices close below $35, it is likely that sellers will take charge invalidating our outlook.
Anchoring our analysis is Feb 8, high-volume bull bar. It is the level of market participants that makes it conspicuous—830k versus 202k averages. That is why trend resumption rejecting lower lows below $35 should be signal by a similar bar with high volumes above 300k and even 830k.