Source: PaxForex Premium Analytics Portal, Fundamental Insight
Bitcoin above 60K provided an overall bullish sentiment boost. While Bitcoin faces the same struggles it did during its previous 50% crash from above 60K to below 30K, Litecoin quietly gains bullish momentum. The move by Litecoin towards a privacy coin, which can cause more widespread delisting from regulated cryptocurrency exchanges, offers it a unique advantage in the experimental privacy-focused dApps race, which can bring smart contracts, the driver behind several competitors like Ethereum, to the Litecoin blockchain. It presently remains a theory, but traders should not discount it, as Web 3.0 continues to evolve, and so do cryptocurrency projects, as Litecoin has shown in the past.
Litecoin continues to witness growth in wallets transacting it, a sign of underlying fundamental strength. With Bitcoin, Binance Coin, and Shiba Inu in the spotlight, Litecoin has enough technical bullish momentum coupled with an undervalued valuation that it can accelerate from current levels. Another sign of strength is that the LTC/USD retreat during the overall pullback in cryptocurrencies was more shallow compared to Bitcoin and company.
The forecast for the LTC/USD remains bullish after this cryptocurrency pair pushed above its ascending Ichimoku Kinko Hyo Cloud, retreated, and stabilized. Short-term volatility may rise after the Kijun-sen has turned flat. The Tenkan-sen continues to advance, together with the Senkou Span A. The CCI retreated from extreme overbought territory but started to ascend, suggesting more upside may follow. Will bulls maintain their dominance over the LTC/USD and force price action 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 188.20 to 200.90 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 195.75
- Take Profit Zone: 223.25 – 235.60
- Stop Loss Level: 176.70
Should price action for the LTC/USD breakdown below 188.20, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 176.70
- Take Profit Zone: 139.25 – 150.70
- Stop Loss Level: 188.20
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
