Source: PaxForex Premium Analytics Portal, Fundamental Insight
Global financial markets remain under pressure, including the cryptocurrency sector, where Bitcoin and Ethereum could lead the ongoing sell-off. Some coins show pockets of strength following their respective sell-offs. Litecoin has approached its psychological support level of 100.00 after correcting from its multi-week peak above 133.00, which briefly pierced the bearish Ichimoku Kinko Hyo Cloud. Long-term hodlers took it as an opportunity to add to their Litecoin holdings, adding to long-term bullishness.
News on the fundamental side remains mostly bullish, including the announcement by Ubersmith, a subscription-management firm for cloud-based services, to accept BitPay as a payment option. It includes leading cryptocurrencies like Bitcoin, Ethereum, Litecoin, Dogecoin, and others. US-based online broker also released its cryptocurrency wallet to its traders, following selected access during the beta test period. It now allows Robinhood traders to withdraw their funds using cryptocurrencies, including Litecoin, but there is a daily limit o $2,999 and ten transactions.
Overall, volatility is expected to remain elevated, and traders should stay cautious and patient. Inflation and inflationary pressures will apply downside pressure on financial assets, including cryptocurrencies. The cryptocurrency market is correlated to the equity market, despite hopes and wishes for a separate financial system as advocated by countless enthusiasts. Bitcoin and Ethereum show more persistent downside pressure, despite sharing some bullish fundamental catalysts with Litecoin due to their increased institutional ownership. Cryptocurrency assets are usually first on the list for selling risk and raising capital reserves in portfolios. Many global equity markets are in a bear market or a stealth bear market, and selling pressure is likely to remain elevated throughout the second quarter.
The forecast for the LTC/USD remains bullish after this cryptocurrency pair stabilized at its psychological support level of 100.00. Adding to the positive outlook is the bullish crossover of the ascending Kijun-sen above the descending Tenkan-sen, pointing to a potential end of selling pressure. The Ichimoku Kinko Hyo Cloud also stabilized and has shown bullish signs following the crossover of the Senkou Span A above the Senkou Span B, suggesting the likelihood of longer-term upside pressure. Traders should also monitor the CCI after it recorded a higher low in extreme oversold territory before completing a breakout above -100. A push through the zero level can accelerate the advance. Can bears pressure the LTC/USD into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the LTC/USD remain inside the or breakout above the 101.35 to 116.50 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 109.80
- Take Profit Zone: 143.50 – 153.45
- Stop Loss Level: 95.50
Should price action for the LTC/USD breakdown below 101.35, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 95.50
- Take Profit Zone: 69.75 – 77.90
- Stop Loss Level: 101.35
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
