Source: PaxForex Premium Analytics Portal, Fundamental Insight

After the LTC/USD experienced a classic pump-and-dump scheme last week, following false reports that US grocer Walmart partnered with Litecoin to offer it as a payment solution in its stores, price action corrected into support. After the announcement, the LTC/USD rallied from $170 to $230 before dropping below $170. While the reversal is bearish, this cryptocurrency pair has reached a support area while selling pressure is fading.

While Litecoin has minted 950 millionaires, while it dropped out of the Top 10 list of cryptocurrencies by market cap, activity is picking up across the network. It is a massive bullish catalyst as new wallet addresses come online faster than Cardano, Bitcoin Cash, and Dogecoin. The hash rate also surged to a three-month high above 325 TH/s. The most recent surge in activity can fuel another rally towards 230, as underlying fundamentals remain promising. 

The forecast for the LTC/USD turned bullish after correcting from its most recent price spike. With the Tenkan-sen flat and the Kijun-sen ascending, traders should expect a bullish crossover. It is likely to increase buying pressure, with the Ichimoku Kinko Hyo Cloud also ascending. The CCI dipped into extreme oversold territory below -100 but has more room to correct to the downside. Volatility is likely to increase, and traders should remain patient until the CCI moves above -100. Can bulls regain control of price action over the LTC/USD and pressure this cryptocurrency pair 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 154.90 to 177.30 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 166.50
• Take Profit Zone: 223.25 – 235.60
• Stop Loss Level: 145.60

Should price action for the LTC/USD breakdown below 154.90, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 145.60
• Take Profit Zone: 123.25 – 136.00
• Stop Loss Level: 154.90

Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.