Source: PaxForex Premium Analytics Portal, Fundamental Insight
Positive news surrounding Litecoin in personal finance will continue to drive fundamental bullishness into 2022. In October, fintech firm Unbanked launched a virtual Litecoin Visa debit card. It allows users to spend Litecoin online everywhere Visa is an accepted payment method. Clients must pass a KYC procedure as part of the process. Another positive development is the Verifone partnership with BitPay, creating a payment network spanning the globe, supporting Litecoin transactions. Analysis by Cryptwerk, 3,100+ companies accept Litecoin directly with an annualized growth rate of nearly 40% compared with 2020.
Japanese SBI Group, a crypto asset management firm, announced plans to launch a fund for Japanese clients. It listed Litecoin as a holding as part of a basket, where no asset exceeds 20%. It will drive institutional buying in Litecoin, supporting long-term price gains. The company behind the world’s first cryptocurrency ETP, 21Shares, created a new product that excludes Bitcoin and Ethereum but includes Litecoin. The bullish news flow continues for Litecoin, and traders should look forward to a bright but choppy 2022.
The forecast for the LTC/USD remains bullish after price action ended its multi-week correction. This cryptocurrency pair is now showing a rounding bottom formation, but traders should expect volatility to remain elevated during the process. The Ichimoku Kinko Hyo Cloud continues its gradual step-down, while the Tenkan-sen and the Kijun-sen drift lower. Adding to bullishness is the CCI, which accelerated out of extreme oversold territory with plenty of upside potential ahead. Can bulls drive price action towards 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 140.95 to 160.25 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 153.50
- Take Profit Zone: 217.00 – 235.60
- Stop Loss Level: 132.40
Should price action for the LTC/USD breakdown below 140.95, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 132.50
- Take Profit Zone: 112.00 – 119.25
- Stop Loss Level: 140.95
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
