If the Bitcoin (BTC) bull run of 2019 has been impressive, the Litecoin (LTC) – that got started before the former – was doubly so. About 530% gains (USD) were to be had from the bottom to the top. But now, with Litecoin’s halving event just a month away, how is the silver crypto doing these days?
Let us first look at a huge weekly chart to orient ourselves. There are three things to note on this chart.
The first is the central swing line of the entire chart – and pretty much all of LTC’s price history. This line rests conveniently at $100 even, and has already been broken at time of writing.
The second is the weekly exponential moving averages (EMAs), which have fanned out into a bullish uptrending fan. This is how we know a long term uptrend has been obtained – and it will take a lot to change that.
The third thing to note is that, while Bitcoin’s recent run briefly tested the 0.618 Fibonacci retracement mark, Litecoin has got nowhere near that on its own chart – not even getting near the 0.382 level, much less its all-time highs.
Taking a closer look at the weekly, we see that Litecoin has had a significant reversal from its recent highs. A nasty doji candle signalled a cooling-off period; but buyers stepped in to scoop Litecoin up at $110, and the crypto is currently bound within $110-120. Also noteworthy is the strong RSI growth, signalling long term strength.
The big question in this situation is: will Litecoin retest the key $100 level? Maybe not. For one thing, the 9-week EMA has held Litecoin well in past months; and for another, $100 was already retested in June. But should a retest come, a successful hold would signal strong bullishness for the rest of 2019.
Now for the daily chart.
Here, we see a picture of consolidation, with few hints which direction the price might break to. Volume has dropped sharply since local highs. RSI fell sharply during a sharp dip, but has begun putting in faint higher lows – and also lower highs. The Histogram is ticking up faintly, although only after being pushed deep into negative territory.
Here, LTC is getting scooped up under the 55 EMA, and heavily sold above the 21 EMA. It seems we’ll have to wait until the middle of the month to see where Litecoin might decide to head.
But considering it’s one of the most popular cryptos in the industry; considering its upcoming halving; and considering that the weekly trend is very bullish, we might expect August and September to see local highs for Litecoin – whether or not it retests $100.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
