Source: PaxForex Premium Analytics Portal, Fundamental Insight
Litecoin joined the massive sell-off across cryptocurrencies during July and August but was able to catch its footing. Volatility has decreased, but traders should not dismiss it or confuse it with a lack of upside potential. Meme coins continue dominating social media, while Bitcoin and Ethereum corner the attention span of first-generation projects, with Ripple and its SEC victory providing an occasional wave of excitement. It allowed Litecoin to expand in the shadows as it developed a stable infrastructure and provided lightning-fast transaction speeds at low costs, fulfilling the aspects to challenge fiat currencies as a viable option in a digital economy.
An often overlooked fact about Litecoin is the changes it has made to remain true to the cryptocurrency identity of privacy and security rather than pleasing regulators and exchanges. The recent stability is a positive sign, as long-term investors remain vested in Litecoin, while short-term traders left for pump-and-dump meme coins. It is also a sign of ongoing maturity in Litecoin, which is essential for businesses to adopt it as a payment method. Rather than seeking massive rallies and contractions, it can allow Litecoin to experience steady long-term growth in the real economy instead of a hyped idea seeking to find a place in this world outside of social media and the metaverse.
Investors seeking exposure to the cryptocurrency sector with a viable real-world application and expanding footprint should consider Litecoin. It displays the characteristics and technical trends for sustained long-term growth, boosted by improving fundamentals. Utility, stability, and scalability are three categories a maturing cryptocurrency sector will focus on, and Litecoin shines among them. The recent sell-off provided an outstanding entry opportunity into the LTC/USD.
The forecast for the LTC/USD remains cautiously bullish as this cryptocurrency pair stabilized at the upper end of its horizontal support area. A failed breakout delayed the anticipated price surge, but the ascending Tenkan-sen is building up a bullish crossover above the descending Kijun-sen. Volatility could remain elevated with the Ichimoku Kinko Hyo Cloud shifting lower. Traders should also monitor the CCI following its breakdown from extreme overbought territory. This technical indicator continues to trade above zero with plenty of upside potential. A false breakdown into negative conditions may precede a bounce. Can bulls withstand short-term bearishness and regain control over the LTC/USD to push this cryptocurrency into its horizontal resistance area from where it can eye the 100 level? 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 62.15 to 67.40 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 64.00
- Take Profit Zone: 83.35 – 92.45
- Stop Loss Level: 57.10
Should price action for the LTC/USD breakdown below 62.15, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 57.10
- Take Profit Zone: 40.05 – 47.25
- Stop Loss Level: 62.15
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
