You are undoubtedly familiar with LTC, whose creation dates back to October 7, 2011. Still present in 2022, its price has fluctuated strongly over the bullish and bearish cycles. Having registered a ATH in 2021 at $413the 2022 bear market is very painful, since the asset is back on levels that had not been revisited since 2020. In recent months, like the rest of the market, LTC evolves in a range. What are the levels to watch and the bias to have for the next few weeks? Without further ado, let’s go straight to TradingView to try to answer them!
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The LTC is freed from a first technical level?
In this first part of the analysis, let’s look at a rather broad time scale in order to understand the situation in which the LTC finds itself. Since the beginning of 2022, the asset has been repeatedly rejecting on the MA 100 as well as the EMA 13. The latter is the first level to resume to hope for a crossing of the trio of EMA 13/25/32, a relevant indicator that allows you to view the current price trend. For several months, LTC has been evolving in a range with a stand at $47.90 and an resistance at $64.58. As long as it does not break out of one of the two levels, the asset will continue to evolve in the same configuration.
The last days, the asset has succeeded in freeing itself of a pivot zone located at 53,5/54,3 dollars. Support and resistance is an interesting level that needs to be held below price if we want to see a return of LTC to the upper end of the range. Something done since last week,e LTC seems to break free from the EMA13. Is this the signal of a real trend change? At the moment, we don’t know, since it must close above this level. Thus, it will be necessary to wait until Sunday evening in order to have more important signals on the weekly time scale.
If it succeeds, it will probably propel itself on the upper boundary which is in confluence with the EMA25. If LTC is able to break this resistance upwards, while breaking free from the EMA32 which is just above, the uptrend will be confirmed on a weekly basis. In this framework, the asset could potentially take the direction of the EMA200 at $99. However, if it fails to do so and it loses the EMA13, the return to the pivot zone will surely be inevitable. In the event that a bearish breakout takes place on LTC, the first two objectives bears would be at:
- The gray area at 39,7 – 41 $;
- The level to technique to 29,42 $ which was previously a support.
A bullish push currently underway
Let’s finish our analysis on a smaller unit of time: the daily scale. You can see that as these lines are written, a beautiful bullish push is in progress, which explains the rather positive analysis that was made previously. The LTC has managed to overcome a set of resistors which are the pivot zone represented in blue, the trio of EMA 13/25/32, the MA 100 as well as the volume profile POC. Having succeeded in breaking these levels upwards, theobjective is now stay above so that we can keep bullish bias. You will notice that the LTC reacted with a wick on the value area high. It is a resistance materialized by the volume profile. Just above is the upper limit of the range which has operated as resistance on many occasions, especially in late July and early August 2022.
If the LTC manages to get rid of the value area high and it closes above the upper limit, it could pick up the EMA 200 which is located at 68,7 dollars. However, be careful that the movement is only irrationality, which would lead to a nice bearish movement within a few days. As explained previously, the objective is to preserve the technical levels that have been gained. As long as LTC does not close below, we can opt for a bullish bias. However, if it is brought back below these levels, it will demonstrate the strength of the sellers. In this case, the LTC could return without difficulty to two technical levels before the lower limit of the range:
- The 52,20 dollarsa technical level where significant volume has been traded;
- The value area low here, contrary to du value area highhas been supporting for several weeks.
Here we are at the end of this LTC analysis. Despite the beautiful green candle happening right now, you have to stay neutral on the evolution of the asset. The challenge is simple: a break in the upper limit of the range in which LTC has been evolving for a very long time. However, if it does not succeed directly, it will be necessary to monitor the ability of the price to rebound on the confluence of technical levels, particularly the MA100 as well as the POC. If the rebound is too weak or the levels are not preserved, the bias will have to go back down, which will lead us to monitor, in addition to the lower limit of the range, the technical levels that we mentioned just a little above. The main asset is your ability to adapt your scenarios according to the volatility of the price. Indeed, the objective is not to lock oneself into a single bias while waiting indefinitely to be right. By being flexible, you will be able to take advantage of multiple trends, whether bullish or bearish.
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The article Litecoin (LTC): a dinosaur still far from extinction? appeared first on Journal du Coin.