Litecoin (LTC): The crypto market has been in the red for the entire day. That has mainly been driven by the uncertainty concerning U.S regulatory stand on Ethereum. Regulators are meeting today to discuss whether Ethereum is a security or a currency. The possibility of it being declared a security has dampened the mood in the entire market. However, the drop has not been that strong considering that there are members of the U.S regulatory bodies are not unanimous in their view. With this background in mind, what can we expect from Litecoin in the next 24 hours?
Well, looking at the Litecoin daily charts, we can see that it is in a clearly defined uptrend. We see it forming higher lows, which is an indicator that every dip in the market is being bought up, hence pushing up the price even further. On top of that, even after today’s market wide drop, the price of Litecoin seems to be unable to break below the 200-moving average, which is a major support. That’s a clear indicator that the momentum is upwards at the moment.
This is also supported by other indicators including the RSI. The Litecoin (LTC) daily RSI has a reading of 56. That’s usually indicative of strong bullish momentum. As long as this reading stays above 50, we can expect Litecoin to continue trending upwards. Looking at the money flow index, we see that the volumes of money flowing Litecoin have declined.
This to a large extent has no bearing on Litecoin, but the market as a whole. Investors are holding USDT positions right now, waiting for the U.S regulatory position on Ethereum. The moment things clear up, and they will in the next few hours, money will flow back into crypto, and Litecoin will be one of the biggest beneficiaries, based on its risk/reward ratio from a technical analysis perspective.
So what’s the best entry position for someone looking to get into Litecoin right now? Looking at the charts and the analysis above, Litecoin is sitting on a major support level right now. If it does not break below this price level in the next few hours, then the $156 to $162 price level could make for a good entry position. This price level offers the best potential returns with the lowest risk level.
As for the exit point, that depends on your appetite for risk, and your objectives in the market. However, based on the charts, Litecoin (LTC) seems poised for a sustained uptrend in the next couple of days. As such, one can hold a long position up to the $227 – $300 price level. That’s the price level where Litecoin has lagged in the past. If it breaks above this price level, then it could be headed back to its all-time highs. If it experiences some form of resistance, it wouldn’t hurt to take your profit. You can always analyze the market again at that point, to determine whether to get back in or not.