Source: PaxForex Premium Analytics Portal, Fundamental Insight
Litecoin continues its push into a privacy coin rivaling known leaders Zcash and Monero. The implementation of the MimbleWimble privacy upgrade. Two additional features implemented with the Core 0.21.2 release are Taproot and MWEB. Both enhance security features, and Litecoin now supports confidential transactions. With the privacy-oriented upgrades, Litecoin can outperform Bitcoin throughout 2022, but it has plenty of ground to cover, as it corrected notably more than Bitcoin.
Last week’s executive order by US President Biden added short-term bullishness, but gains were wiped out within 24 hours. While some refer to it as a watershed moment for the cryptocurrency industry, it could counteract its very foundation. Litecoin positioned itself to cater to those opposing moves to limit privacy, while Bitcoin takes the other side of the trade. From a fundamental perspective, Litecoin beats Bitcoin on all metrics that matter from a remittance perspective. Litecoin is faster, cheaper, and more scalable.
With almost 30,000 Litecoin ATM locations globally and growing, Litecoin is accessible for those seeking to convert it to cash. Active daily addresses have decreased over the past few weeks, but daily transaction volume increased, another bullish sign for Litecoin. Traders should remain patient but cautiously bullish with price action hugging the 100.00 level. A sustained bullish breakout is pending. Litecoin has significantly more long-term upside potential than downside risks.
The forecast for the LTC/USD remains bullish after this cryptocurrency pair stabilized at its psychological support level of 100.00. Confirming the lack of short-term selling pressure is the Kijun-sen, which flatlined. The Tenkan-sen shows early signs of bullishness, while the Ichimoku Kinko Hyo Cloud is losing bearishness after the Senkou Span B ended its descent and turned flat. Traders should monitor the CCI, which escaped extreme oversold territory and indicates bullishness. A breakout above 0 can trigger the next buying opportunity in Litecoin. Can bulls capitalize on current developments and 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 96.00 to 108.90 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 102.60
- Take Profit Zone: 143.50 – 153.45
- Stop Loss Level: 90.00
Should price action for the LTC/USD breakdown below 96.00, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 90.00
- Take Profit Zone: 69.75 – 77.90
- Stop Loss Level: 96.00
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
