As with the comparably important Ethereum (ETH) altcoin, Litecoin (LTC) has faced a sharp drop in USD price in recent days, due to Bitcoin’s (BTC) own sharp selloff. And like Ethereum, Litecoin’s trend is now mostly neutral, and waiting for Bitcoin to settle down.
Also like Ethereum, Litecoin’s price prospects look different depending on which chart one views: LTC/BTC or LTC/USD.
Looking at the USD chart, we notice that Litecoin is still respecting an uptrend support line, in play since May 10. The crypto was continually rejected from the $120 zone even before Bitcoin’s movements; and BTC’s dump sent Litecoin tumbling to the $100 support line.
If Bitcoin takes another leg down, there is a strong chance that Litecoin could lose the $100 level and retest $90. After being rejected so soundly near $120, a period of retracement seems appropriate – and strong sell volume on the daily chart does not paint a rosy picture.
The four hour chart, above, suggests weakness in the shorter term. Volume has been quite weak on today’s bounce, and price was not able to close above the 9H EMA trendline. What’s more, the histogram (bottom) has begun to curl downward where we would like to see it curling the opposite way. $90 may very well be in the cards.
Looking at the four hour LTC/BTC chart below, we – again like Ethereum – see a much different and more stable picture.
Litecoin is very clearly consolidating in a perfect symmetrical triangle, with a rigid respect for the triangle’s trendlines. Symmetrical triangles are neutral by nature, and their trends are implied by previous price movement – in this case, bullish.
It would be very possible for Litecoin’s USD price to fall along with Bitcoin’s, while completely respecting this LTC/BTC symmetrical triangle. Given Litecoin’s general bullishness in 2019 – and especially with its halving event a mere two months away – it is probably a better bet that LTC/BTC will break up and out of this pattern than down.
But for that to happen, a period of calm for Bitcoin will probably be needed first.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
