Litecoin Continues to Drift Lower

[ad_1]

Pay attention to other crypto markets in general as they can give you a clue.

Litecoin initially tried to rally during the day on Thursday but then fell to reach the $107 level. The Litecoin market has been drifting lower for quite some time, and therefore it is not a huge surprise to see that we may be heading back to the $100 level. The $100 level had previously been a significant support level, and therefore you need to pay close attention to it. After all, it does seem to be a place of demand, but what I am concerned about is that the market has made lower highs since bouncing from that level.

Advertisement

Because of this, I think the market will continue to see a lot of noise, but if we break down below the $98 level, then it is very likely that we really start to unwind, and of course, Litecoin will be at the mercy of the overall crypto markets in general. It is worth noting that Bitcoin is struggling to bit, and as long as that is going to be the case, is very likely that the Litecoin market will do the same. After all, the Bitcoin market has an outsized influence on the overall crypto world, and as long as that is the case you have to keep both charts open if you are wanting to trade Litecoin.

On the upside, if we were to break above the 50 Day EMA that would be a good start, but that is up at the $119.13 level. After that, we then have the $125 level. The $125 level is a psychologically important figure, but we need to get above there to get things moving. I do think that we are more likely than not going to see a lot of noisy behavior, but that is something that you would expect in a market that is trying to curl higher.

The market has been in a downtrend for a long time, but we are still trying to at least consolidate, so therefore we are trying to figure out whether or not we are getting ready to recover, or if it is just simply a stop on the way to lower pricing. Risk appetite will have a huge effect on this market, as Litecoin is pretty far out on the risk spectrum. Keep this in mind, and pay attention to other markets in general as they can give you a clue.

Litecoin Chart

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using EkamFX services, please acknowledge all of the risks associated with trading. The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor. The information on this website is not directed to residents of certain jurisdictions such as United States, Canada, Iran, Cuba, France, and some other regions, and is not intended for distribution to, or use by, any person in any countries or jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2018 - 2024 EkamFX.com. All Rights Reserved.