Litecoin Defies Gravity, Primary Trend is Southwards with Resistance at $58

Litecoin Defies Gravity, Primary Trend is Southwards with Resistance at $58
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Litecoin may have slipped in market cap and is currently below the top 20. However, the coin is in green, outperforming Bitcoin and Ethereum in the past 24 hours. At spot rates, LTC is up two percent against the USDTand unwinding the losses of August 26.

Still, even at current levels, there should be strong, high volume confirmations to assuage general fears of more steep losses in the days ahead.

Ideally, gains above August 19 highs with expanding participation may indicate interest and, thus, the movement that may pump the coin above immediate liquidation lines.

Litecoin may be undervalued

For Litecoin to turn the corner there must be fundamental primers to fuel the next leg up. At the top of this is how the network finds adoption.

From early on, Litecoin creators continue to maintain that the network is nothing more than a complementary platform for Bitcoin. It serves as its experimental protocol, a testing ground for testing exciting improvements set for final deployment on Bitcoin. As Bitcoin’s silver, their stance has worked out.

However, with more altcoins sprouting, the Litecoin network’s activity is lower, which can be counterproductive. Its low fees may not even help at the moment despite adoption from LiteBringer’s developers. Still, supporters are confident that Litecoin could be undervalued gauged from the network’s unique addresses viz-a-viz its spot market cap.

Besides, the general inclination from whales to hold LTC could also indicate interest which is overly bullish for the coin.

Litecoin Price Analysis

Litecoin Price Analysis

LTC is within a bear breakout formation following sharp losses on August 19.

Then, prices cratered below a multi-week support trend line, with rising volumes indicating exhaustion and a shift of trend.

At spot rates, losses of August 26 confirmed the primary trend to be southwards, coming after brief consolidation that proved to be distribution.

Even though prices are higher when writing, traders may search for liquidation opportunities as long as prices are below the middle BB and $58. The immediate target lies at $51, marking last week’s lows.

On the other hand, risk-on traders may wait for a clean break below $51, targeting $41 as they align with the August 19 bear bar in a continuation pattern.

Technical charts courtesy of Trading View.

Disclaimer: Opinions expressed are not investment advice. Do your research.

If you found this article interesting, here you can find more Litecoin news.


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