Litecoin Rallies - Short Term Outlook, Possible Landing Spots
/LTC Back Into Play As Interest Spikes
Litecoin is back into the spotlight, getting a lot of major attention by institutional buyers and major corporations announcing their plans to integrate LTC for purchasing use. The recent spike is a good indication of more action to come, as this project has been brought back to the forefront.
The price line has been bouncing off of the 50-day EMA (orange line) for several days now, allowing for easy prediction of price targets. But with the impending BTC correction, we don’t know if the 50-day EMA will continue to be pulled up, or take a bearish slide (indicated by the dashed orange line).
The 200-day EMA continues to show a strong and steady uptrend, and could help to identify a possible bottom once the alt market goes into its bearish phase. The volume profile shows strong clusters at $59, $56, and $48. All of these represent “popular” buying and selling points by institutional buyers, and could be targets to look for when price corrects (indicated by the orange arrows at 1, 2 and 3 on the chart).
The stochastic is currently weak, showing a downward trajectory in the cycle which could be an indication that points 1 and 2 are coming next in the price movement. However, if LTC breaks the 200-day EMA, $48 is a possibility for a low point. This could be the last bargain price for picking up Litecoin before “alt season” kicks off.
The On-Balance Volume shows a mild amount of distribution, but the overall upward movement is evidence of continued consolidation of Litecoin among institutional investors. I decided to put LTC back into my portfolio after selling for a loss in 2018, once the market peaked out and started its long journey back down into the bargain basement zone.
My plan is to continue accumulating LTC with hopes to play this market correctly this time as we head into the major bull market in 2021. The strategy is to dollar-cost average, with my first target purchase in the green “strike zone” as indicated on my chart. Even though I believe the correction will go lower than this area, I’m making the first purchase here just in case the market decides to rally and continue heading higher. But if it dips, I’ll be accumulating until we see an absolute bottom with the goal of securing the best overall average purchasing price.
Carlton Flowers
The Crypto Pro
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