Litecoin on a crazy run, but retracement overdue: $100 level to watch

11 Jun, 2019
by Lourens Pepler
Price Analysis
Litecoin on a crazy run, but retracement overdue: $100 level to watch

Litecoin has been on a fantastic run this past 40 days providing almost 500% gains from its low of $23. Is $128 the final price for LTC, or was this trend simply a ramp for the actual price structure to come? This is our LTC analysis for 11 June 2019.

Highlights:

- Up almost 500% since low

- Divergence forming

- Lower timeframe momentum decreasing

- $100 support target

Starting with the daily chart, we first look towards momentum and what RSI is telling us. We are able to see that LTC kicked off its bull run on 18 December 2018 when RSI moved above 50 and found support. As we know during a bull market, 50 RSI acts as support for momentum, which we are able to see on the chart.

Currently RSI and price has formed divergence, this is when price makes new highs, but momentum fails to make new highs on RSI. This is a reversal indicator, which leads us to believe that LTC will experience a retrace from here as RSI makes it way back to 50.

LTC/USD chart provided by Tradingview

Drawing a simple trend line on price, we can more or less see which price we will see when RSI reaches 50. The trend line tells us that $100 looks like a good place to act as a support for a retracement. $100 is also the price at which momentum peaked the highest on RSI, adding some confidence in our support line.

LTC/USD chart provided by Tradingview

On the 4 hour chart we can also see that LTC has extended past its down trend momentum, indicating that as soon as buying pressure runs out, we will see LTC start falling down to our support line.

Lastly we will use our Fib tool to measure this last impulse structure from low to high, to lay out the possible retracement levels. By now we know that during a bull market, coins will retrace between 50% and 61% of the impulse wave, and from our chart we can now see that a 50% retracement on the Fib will bring us to our $100 support target.

LTC/USD chart provided by Tradingview

Before we look to possible future expansion levels, we first have to wait for LTC to complete this retrace to $100. Do you think LTC will continue to make new highs, or will this falling momentum first take us to support before we continue rising? Let us know what you think in the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

Follow Chepicap now on Twitter, YouTubeTelegram and Facebook!

Chepicap is now LIVE in Blockfolio! This is how you receive our latest news in your portfolio tracker!  

Poll

Will Litecoin continue upward?

(86 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage