Hi friends! Welcome to this update analysis on Litecoin! Let’s get right to it! Looking at the four hour chart, you can see that LTC has finally reached the 50 (in orange) from the daily chart! For the record, since this is the four hour chart, I am using the 300 , which is equivalent to the 50 from the . With that said, I’ve been telling you all how important this moving averages is for months now. You can see how resistive it has been. Each time price as risen to it, LTC has been stopped cold (red lightning bolts.) The daily 50 is like a brick wall of resistance that the market just can’t seem to conquer. Now, here we are again. Right at the 50 . At the moment, you can see that LTC is actually slightly above it. Bitcoin , on the other hand, has not yet reached it’s 50 . So, since BTC still has some room to climb, that could help to lift LTC a bit, but the market will probably hang out around here, until we see what BTC is going to do.
Since we know that the 50 has been so resistive, if price can finally get above it, and hold the 50 as support, that would be a significant turning point in the market. If we see something like that I think that LTC will rally to the “Major Overhead ,” around $47.22-$49.14. However, it is important to wait, to see if support can be confirmed. That’s because we are technically at a major level of resistance that has relentlessly defeated LTC. So, technical, the odds are that LTC will lose. Those are the odds, but the increased buy-volume, the rising buy-side momentum, and the recent divergences tell us that we may be reaching a turning point. So, lets pay close attention to the price action around the 50 . A solid rejection would be a technical sell signal, while sustained support would be a technical buy signal.
Happy Holidays Everyone!