Source: PaxForex Premium Analytics Portal, Fundamental Insight
With Bitcoin and Ethereum offering users high transaction costs and longer wait times, Litecoin remains an attractive option. It has recently seen a wave of bearish news and was displaced by Filecoin as the ninth-largest cryptocurrency by market value. Filecoin is a decentralized storage network, but Litecoin displays bullish forces despite being delisted from European crypto exchange BL3P, which traders should ignore. The LTC/EUR did not witness the same trading volumes compared to the LTC/USD.
Price action pushed above the psychological $200 resistance level, from where it can surge into its horizontal resistance area and seek more upside. The majority of Litecoin investors and traders face floating losses and are unlikely to sell until the price increases. It decreases selling pressure and limits downside potential. Together with fading resistance, the LTC/USD should be able to forge ahead and challenge its most recent peak.
The forecast for the LTC/USD remains bullish after ending its minor correction, which was reversed by its ascending Ichimoku Kinko Hyo Cloud. While the Kijun-sen flatlined, the Tenkan-sen continues to drift higher. A crossover can add to bullish pressures as the CCI is nearing extreme overbought territory but has more upside potential. Can bulls force the LTC/USD into its next horizontal resistance area and potentially pressure it into a breakout? 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 199.00 to 208.25 zone, the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 203.20
- Take Profit Zone: 227.45 – 241.00
- Stop Loss Level: 192.35
Should price action for the LTC/USD breakdown below 199.00, the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 192.35
- Take Profit Zone: 176.50 – 182.00
- Stop Loss Level: 199.00
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