Litecoin has seen a 0.32% price decline over the most recent 24 hour period of trading. The cryptocurrency is currently trading hands at a price of $64.85, at the time of writing, after enjoying a 13.34% price hike over the past 7 trading days.
What’s been going on?
Bitcoin has enjoyed a price hike totalling around 8% over the past trading week and altcoins have enjoyed the increase in sentiment delivered from this price rise. The entire industry has seen a $24 billion increase in market cap value over the past 7 days.
However, despite this price increase, there are still sceptics within the industry that believe Litecoin will not rise to its previous all time high prices.
What did the report released by Stasis Group say?
A research report released on August 30, 2018, by the Stasis Group had reported that, according to their research, Litecoin will never reach its all time price around $400 again.
The report was researched by Sherrington Dewalt and Michael Hodapp who used peer-based metrics, quantity theory, discounted cash flow models and economic forecasting to come up with their evaluation.
Their conclusions regarding Litecoin stated that the cryptocurrency will never reach its ATH price and has a 10-year outlook valuation of a price around $225.
They have also estimated that Bitcoin will reach a value of $96,000 by 2023 and $144,000 by the end of next decade. Litecoin is not alone with the demise prediction as Stais Group also predict that Ethereum will peak at $882 in 2019 and then drop to $100 within the next 10 years.
Where is Litecoin currently ranked?
Litecoin is currently ranked at 7th position in terms of overall market cap across the entire industry. It has a total market cap value of $3.72 billion after the 64 month old coin suffers a 47% price over the past 90 trading days.
Let us continue to analyse price action for Litecoin over the recent period.
LTC/USD – SHORT TERM – DAILY CHART
A brief catch up
In our last analysis, we had highlighted the support located at the downside 1.414 Fibonacci Extension level priced at $53.69. We had also outlined a long term downward wedge pattern that has been forming within the market over the course of the entire 2018 trading year. For a more detailed overview, we recommend for you to glance over the long term analysis in our last article, here.
So what actually happened?
We can see that the support highlighted at $53.69 proved its validity as the market used this price support to make gains.
Where are we trading now?
We can see that price action appreciated from the support level until meeting resistance at the upper boundary of our outlined declining wedge formation. Price action has briefly rolled over at this level to where it is currently trading at the $64.97 handle.
Where can we go from here?
As price action has rolled over slightly, we can expect the recently initiated downward movement to continue momentarily over the short term. From the long term outlook, immediate support is expected at the $63 psychological round number handle followed by the previous significant support located at the downside 1.414 Fibonacci Extension level priced at $53.69.
If the bears can push price action further below this level then we expect further support to be located at November 2017’s low price located at $49.52.
What if the bulls take control?
If the bullish momentum can continue and push the market out from the confines of the downward sloping wedge pattern, we expect immediate resistance to be located at the previous downside 1.272 Fibonacci Extension level priced at $73.85 followed by resistance found at the 100 day moving average which is currently floating around the $84 handle.
Further resistance expected above the 100 day moving average can be located at the long term .886 Fibonacci Retracement level priced at $86.29.
What are the technical indicators reading?
The technical indicators within the market are currently favouring the bullish players as the RSI trades well above the 50 handle. If the RSI can manage to maintain above 50 we can expect the bullish momentum to continue within the market.
Similarly, the moving averages have provided favour towards the bulls within the market as the 7 day EMA (blue moving average) crosses up above the 21 day EMA (purple moving average) printing a bullish crossover signal. If these two moving averages continue to diverge away from one another we can expect the bullish pressure to increase within the market.
Let us continue to quickly analyse price action over the shorter term for those who cannot keep their eyes off of the charts!
LTC/USD – SHORT TERM – 4HR CHART
What’s been going on?
We can see that the recent bullish pressure has driven the market from a low price of $49.14 on August 14, 2018, to a high price, recently seen, of $67.91 on September 1 2018. This was a price increase totalling 37.83% from low to high.
We can see that price action has recently rolled over and found support at a short term .382 Fibonacci Retracement level (drawn in black) priced at $64.31.
Where can we go from here?
If the market continues to drop from this support level we expect immediate support to be located at the short term .618 Fibonacci Retracement level (drawn in black) priced at $62.10.
Further support can then be located at the long termed .382 Fibonacci Retracement level (drawn in red) priced at $60.75 and then the .618 Fibonacci Retracement (drawn in red) priced at $56.30.
IF the bulls can continue with their recently established bullish momentum and push the market above resistance at $67.93 we expect immediate further resistance to be located at a 1.618 Fibonacci Extension level priced at $70.63. If the bulls can push even further higher we can expect further resistance at the longer termed 1.272 and 1.414 Fibonacci Extension levels (drawn in yellow) priced at $71.93 and $74,03 respectively.
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