Litecoin (LTC) Price Analysis — Will Bears Retest $40 Before Going Higher?

Price Predictions
Wed, 07/01/2020 - 14:22
Denys Serhiichuk
Could Litecoin (LTC) growth outperform the top coins?
Cover image via www.tradingview.com

Disclaimer: The opinion expressed here is not investment advice it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

The cryptocurrency market is shifting slightly to green. However, that does not apply to every coin. The biggest gainer from the top 10 list remains the recent winner Cardano (ADA) whose rate has risen by 4.10% over the past day.

Top 10 coins by Coinstats

As some altcoins are rising faster than Bitcoin (BTC), this has affected the market share of the leading crypto, which has lost a few points and is now 64%.

BTC’s market share

The relevant data for Litecoin is below.

  • Name: Litecoin

  • Ticker: LTC

  • Market Cap: $2,706,389,337

  • Price: $41.64

  • Volume (24h): $1,305,239,840

  • Change (24h): 1.36%

The data is relevant at press time.

LTC/USD: Can the $40 support hold the altcoin from a drop?

Litecoin (LTC) is recovering much faster than the other coins from the top 3 list. The growth over the past day has amounted to 1.40%, though over the past week the 'digital silver' has dropped 3.62%.

LTC/USD chart by TradingView

On the hourly chart, Litecoin (LTC) found a local support at $41.30, followed by an ongoing bounce off. What is more important, though, is that the growth is accompanied by slightly rising trading volume. The coin still has not left the sideways channel, which is why a continued rise to $41.65 is possible. It is crucial to point out that this would just be a correction of the fall but not the start of a new bullish trend.

LTC/USD chart by TradingView

On the 4H time frame, the bullish projection is relevant as trading is taking place within the ascending channel. Furthermore, the lines of the MACD indicator are in the green zone, which is also a sign of ongoing buyer dominance. If the growth continues, the first goal for bulls will be the $42 mark. The high liquidity in that zone also supports this idea.

LTC/USD chart by TradingView

While, in the short term, the picture is looking bullish, on the daily chart bears are in complete control of the situation. A bearish divergence has formed on the RSI indicator. In addition, highs are becoming lower and lower, which supports the idea of seller dominance. The most likely scenario is a drop to the $39 mark in the nearest weeks.

Litecoin is trading at $41.61 at press time.

 

About the author

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and makes predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing & ICO Advisory, ATB Coin, and others, can be contacted at denys.serhiichuk@u.today.


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