Litecoin

Technical Analysis of Litecoin

The cryptocurrency market is advancing this week, the price of Bitcoin is above $8 000 and this is certainly a positive thing for all other cryptos. Litecoin is one of the best performers on the cryptocurrency market in the last several days, in less than five days the price of Litecoin has advanced from $75 above $103 and the current price stands around $100. Litecoin is a very interesting cryptocurrency to monitor since it appears to hold a number of advantages over Bitcoin. Litecoin has a faster block-processing rate that keeps miners intrigued (and rewarded), has a more decentralized proof-of-work algorithm than Bitcoin and lower transaction settlement times and fees. Litecoin was created by a Google employee Charles Lee, this project has a very good team of software developers and a large community that is growing. Lots of analysts agree that Litecoin has the potential to make very big gains in the upcoming period, short term support and resistance levels are $90 and $120 – If the Litecoin jumps above $150 that would be a “BUY” signal and the open way to $180. If the Litecoin jumps above  $200 that could be a strong signal of the trend reversal and the open way to $300. On the other side, if the LTC falls below $80 that will be a strong signal “SELL” signal and the next target could be around $70.

Advice: This trading week is very positive for the cryptocurrency market so far and the price of Litecoin currently stands around $100. Litecoin can be a very good investment option according to estimates and some predictions say that this cryptocurrency could be above $300 in the next two years. Technically looking, if the price advances above $150, short-term traders can enter the position with the stop loss at $138 and take profit at $180 or even $200.
 
 

Technical Analysis of Litecoin

In less than 30 days the price of Litecoin has advanced from $52 above $98 and the current price stands around $79. Lots of analysts agree that Litecoin is currently at a point where it has the potential to make very big gains and the current situation represents a very good entry point for long-term investors. Litecoin was created by a Google employee Charles Lee, this project has very good team of software developers and a large community that is growing. When we look at the 1-year chart we can see that Litecoin is moving in “downtrend”. As long Litecoin is below $100 this cryptocurrency is in the “SELL” zone. Short term support and resistance levels are $70 and $100 – If the Litecoin jumps above $90 that would be a “BUY” signal and the open way to $100. If the Litecoin jumps above  $100 that could be a strong signal of the trend reversal and the open way to $150. On the other side, if the LTC falls below $70 that will be a strong signal “SELL” signal and the next target could be around $60.

Advice: Litecoin is a very interesting cryptocurrency to monitor since it appears to hold a number of advantages over Bitcoin. Litecoin has a faster block-processing rate that keeps miners intrigued (and rewarded), has a more decentralized proof-of-work algorithm than Bitcoin and lower transaction settlement times and fees. The beginning of April has been very positive for the cryptocurrency market and the price of Litecoin currently stands around $79. Litecoin can be a very good investment option according to estimates and some predictions say that this cryptocurrency could be above $300 in the next two years. As for the technical picture, the Litecoin remains in bearish phase but if the price advances above $100, short-term traders can enter the position with the stop loss at $90 and take profit at $120 or even $150.

WHAT IS HAPPENING TO LITECOIN?

Litecoin (LTC), from its introduction was on a full bullish form, hitting an all-time high of $360 with a $1 Billion market capitalization. But recently, most especially in 2018, it has been on a bear market range. If you are familiar with Litecoin, your question is as good as mine. The only difference however will be the fact that I am adding ‘the heck’ to my question. What the heck is happening to litecoin?
For those who aren’t familiar with Litecoin; Bitcoin and Etherum, just as they sit on the top of the global market cap, occupies the focal points of most of their digital currency investment. Although some new investors have shown interests in altcoins like ripple, dogecoin and other coin. However, with the Litecoin currently sitting at the 7th position of the cryptocurrency market cap, it has been hard for Charlie Lee’s creation to get new investors.
Litecoin is a peer-to-peer (P2P) open software and cryptocurrency project. It operates on and open source cryptographic protocol, allowing the transfer and creation of tokens. Litecoin is a decentralized entity, with no control right given to any authority or government agencies. It is faster than Bitcoin, and it is a cheaper option for people who are performing transactions. Litecoin came to being in 2011 as a fork of Bitcoin core. To play simple, it was a divergent of Bitcoin, but it had slight modifications that made it different from Bitcoin. One of such was the reduction of block generation time at exactly 2.5 minutes. It also came with a modified Graphical User Interface (GUi), with a slight change in algorithm, functioning under the MIT/X11 lincense. The simple idea behind it was the making of a ‘light coin’, a coin that can be easily used for lower transactions. When the Litecoin was introduced into the market, it kept growing, reaching a market capitalization of $1 billion in November 2013. In 2017, Litecoin took crucial steps, first by becoming one out of the relevant cryptocurrencies to adopt the segregated witness (SegWit). SegWit is a system which increases the block size limit of a blockchain, this it does by separating transaction signatures. In May of 2017, Litecoin hosted the Initial Network Networking transaction, transferring a small fraction of Litecoin in less than a second.

What is Happening?

Forecasters, and investors alike hardly do predictions on Litecoin as much as they do for other altcoins. However, 2018 was not a bullish year for this Bitcoin fork cryptocurrency. No doubt, it has seen better days of glory, and now might not look like the best time to invest. MasterCard, which the company have been looking forward to partnering with, on its LitePay project recently came out saying they were only going to partner with a government backed cryptocurrency project. As at now, Litecoin seems to have been oversold. The value have declined in a super bearish path, and there has been many market over reactions. Most Litecoin holders bought their shares when the price was on a high, expecting it to go higher, but it didn’t turn out that way.
So from indications, all Litecoin holders have harbored the desire to sell their coins. The fact that it is oversold, according to the experts does not really have so much effect on it, as the bearish path it has taken can be overcome with a new bullish path, if good measures are taken.  Despite the fact that the rebound, may likely not take Litecoin to its all-time high market capitalization, there is a big chance that the prices will go green again.

Any Hopes?

Some of the measures taken by the Litecoin team this year, that will strengthen it in 2019 includes the listing in exchanges. The year 2018 saw it being listed on exchanges, the most popular being on Gemini. This has contributed to the relative increase in demand for the  coin that is popularly tagged the Bitcoin fork. And 2019 promises more listings on bigger exchange platforms. With all these facts stated, I guess the answer to our question, as established earlier is simple. Anything can happen to Litecoin, and everything is happening with Litecoin.

Trading Strategies for Litecoin

Trading Strategies for Litecoin
Litecoin is a peer-to-peer cryptocurrency that utilizes the blockchain technology to maintain a public ledger of all transactions without being managed by any central authority. Litecoin was an early bitcoin spinoff or altcoin, as it was designed to solve lots of problems that Bitcoin was facing. It has reduced the block time of Bitcoin from 10 minutes to 2.5 minutes. Therefore, Litecoin’s transactions are faster and the fees relatively low.  A transaction using LTC, which is Litecoin’s ticker symbol, costs 0.00000001 LTC.
Binance and Coinbase are by far the most popular places to buy and sell Litecoin. Binance, for instance, is the most trusted and recommended place not only for Litecoin trading but also all other cryptocurrencies. They are known for their strong team, proven products, superior technology, and industry resources.
The most common indicator used in the Litecoin trading strategies is the On Balance Volume (OBV). It uses a combination of volume and price activity to inform you the total amount of money going in and out of the market. For instance, if Litecoin price is moving up, we expect that the OBV indicator too will rise, indicating an inflow of money. The opposite is also true. However, leading indicators such as an OBV are prone to alteration as a result of price fluctuations in the market. For this reason, a second indicator, the 20-day moving average, should be used.
Learning how to scalp trade is an essential technique as it translates to building consistent profits. We are thus going to discuss key steps to follow when buying Litecoin:

  1. Wait until the OBV indicator enters into a prolonged period of consolidation.

When the OBV indicator is seen consolidating, it means there is buying up of cryptocurrencies by investors.
 

 

  1. Wait for a breakout above the OBV consolidation zone.

When the investors accumulate a cryptocurrency, it will always trade sideways. When all the available supply is exhausted, the smart money will mark up the Litecoin price.

  1. Buy Litecoin when we’re close above the 20-day moving average.

As discussed earlier, we will use the 20-day moving average indicator to confirm the OBV readings. After the OBV breaks above its consolidation, Litecoin price breaks and closes above the 20-day moving average. One can hence place a buy order.

 

  1. Hide the protective stop loss.

Place your protective stop loss below the most recent support level.

 

  1. Define a take profit level.

Take profit when Litecoin price breaks and closes below the 20-day moving average as this is an indication that the market is about to reverse.

The above steps are also applicable when selling Litecoin but in reverse.
References:

  1. (Admiral Markets, n.d.)
  2. (Day Trading, n.d.)
  3. (Ava Trade, n.d.)

 

LiteCoin Technical Price Analysis(Oct.30th)

Litecoin is a very interesting cryptocurrency to monitor since it appears to hold a number of advantages over Bitcoin. Litecoin has a faster block-processing rate that keeps miners intrigued (and rewarded), has a more decentralized proof-of-work algorithm than Bitcoin and lower transaction settlement times and fees. Lots of analysts agree that Litecoin is currently at a point where it has the potential to make very big gains and the current situation represents a very good entry point for long-term investors. Litecoin was created by a Google employee Charles Lee, this project has very good team of software developers and a large community that is growing. When we look at the 1-year chart we can see that Litecoin is moving in “downtrend”. As long Litecoin is below $100 this cryptocurrency is in the “SELL” zone. Short term support and resistance levels are $50 and $70 – If the Litecoin jumps above $70 that would be a “BUY” signal and the open way to $90. If the Litecoin jumps above  $100 that could be a strong signal of the trend reversal and the open way to $150. On the other side, if the LTC falls below $50 that will be a strong signal “SELL” signal and the next target could be around $40.

Advice: Litecoin can be a very good investment option according to estimates and some predictions say that this cryptocurrency could be above $300 in the next two years. Yes, it is true that the price could fall even more but the current price of Litecoin stands around $53 and this is very close to strong support which stands at $50. As for the technical picture, the Litecoin remains in bearish phase but if the price advances above $100, short-term traders can enter the position with the stop loss at $90 and take profit at $120 or even $150.